Induslnd Bank laid an ambition to touch Rs 1000 crore in its credit card business by the end of March 2014, Said Mr. Romesh Sobti, Managing Director and Chief Executive Officer of Induslnd Bank.
At present the credit card portfolio of Induslnd Bank is Rs 380 crore.
Mr. Sobti said that the credit card business is very profitable as it generates lot of ‘other income' in form of fees, foreign exchange business, transaction and issuance fees, etc. "Ours is a transaction-based model so spenders make the money for us...," he said.
IndusInd Bank had taken over Deutsche Bank's credit card business in 2011 for around Rs 224 crore. The bank's active customer base during the take over was around 1.35 lakh.
"This base has grown, though not dramatically, but we have tried to deepen the existing relationship with customers. Currently, we issue about 4,000-5,000 cards every month."Mr. Sobti said.
The acquisition has worked very pleasantly for the bank. "It has surprised us. We tried to rationalize a little bit on the cost structure and some rationalization on the vendors' side, so there was a cost reduction initially. But we gave stronger propositions to the card holders and there has been almost nil attrition," Mr. Sobti added.
Mr. Sobti said, "We see a profit before tax of about 50-60 crore this year. It was a small purchase, easily digested and profitable."