RBL Bank Ends Co-Brand Credit Card Partnership with Bajaj Finance

RBL Bank has announced the discontinuation of its co-branded credit card issuance partnership with Bajaj Finance. While new co-branded cards will no longer be issued, RBL Bank will continue servicing its existing portfolio of approximately 3.4 million co-branded credit cards. Customers will retain their current benefits, and upon renewal, these cards will be reissued as RBL Bank-branded cards to ensure a seamless experience.

Continued Growth Strategy

The decision aligns with RBL Bank's evolving credit card business strategy, which focuses on diversifying its portfolio through direct channels and new co-brand partnerships. Over the past 18 months, the bank has significantly expanded its issuance capabilities and reduced its reliance on the Bajaj Finance partnership, scaling down from issuing 1.26 lakh cards in September 2023 to just 37,000 in September 2024.

Jaideep Iyer, Head of Strategy at RBL Bank, emphasized that this shift will not impact the bank's growth trajectory. “We are actively growing our cards book and have implemented new co-brand partnerships,” Iyer stated. The bank currently collaborates with notable partners, including Mahindra & Mahindra Finance, TVS Finance, IOC, and IRCTC, to deliver diverse co-branded card options.

Cross-Selling Opportunities

Beyond card issuance, RBL Bank is focused on leveraging its credit card customer base for cross-selling opportunities. Iyer highlighted the bank's excitement about offering additional products to its card customers, an area that has already shown promising results.

Financial Performance

As of Q2 FY25, RBL Bank's credit card advances stood at ₹17,538 crore, reflecting a 17% year-on-year increase. The bank also reported a total of 51.74 lakh outstanding credit cards as of October 2024, showcasing its robust presence in the credit card market.

Conclusion

Since the partnership's inception in 2016, the collaboration with Bajaj Finance significantly contributed to RBL Bank's credit card growth. However, this transition underscores the bank’s confidence in its independent capabilities and new partnerships to drive future growth in the highly competitive credit card market.