Private sector lender, IndusInd Bank has finally made an entry into credit card industry of India by acquiring the credit card business of the Indian operations of Deutsche Bank.
The lender will now get a customer base of 2,00,000 card customers with this deal.
According to Mr Romesh Sobti, MD and CEO, the credit card business will allow the bank to enter into this segment of the banking industry too and qiucken its pace in the business.
“Deutsche Bank has been in this segment for the past five or six years so we have got a matured and risk-validated portfolio. As it is fully provided for, we start with a zero default. If we had gone about setting up credit card business organically it would have taken us time,” Mr Sobti said.
He added that the industry of credit cards is again gaining momentum in the Indian space. “Profitability has come back to the cards business,” he said.
Mr Prashant Joshi, Head, Private and Business Clients, India said, “Our agreement with IndusInd Bank is in line with our desire to build our retail banking business in India around our core strengths of deposits, wealth management, and secured lending.”