Bajaj Finance, the non banking finance arm of Bajaj Group is planning to make an entry into the credit card segment of the Indian personal finance industry. The NBFC aims to make its entry by the second quarter of this fiscal that is by July-September.
Commenting in this regard, CEO Rajeev Jain said that the NBFC is planning to enter into a strategic alliance with some major bank in this regard.
"We are in talks with some banks. We aim to issue five lakh credit cards in the next three years after the launch. We would initially tap our 45,000 consumer durable customers to market our cards. Credit card spending is increasing in India," Jain said.
The Q4 results of the company has been commendable. The company booked 184% rise in net profit on year-on-year basis taking it to Rs 71 crore. The net interest income (NII) of the bank rose to Rs 277 crore, a 40% rise.
"We expect 30-35% NII growth in FY12. The rising interest rates will affect our loan growth in July-August quarter in segments other than two wheeler and consumer durables. Our cost of funds have gone up by 200 basis points in last 5-6 months. We have increased our lending rates by 120 bps during the time," Jain said.