SBI Card, a joint venture of State Bank of India and GE Money is likely to announce a financial package for its customers who have defaulted due to the crisis.
Through this move, the company proposes to support those clients who have been loyal in their repayment procedure but due to the financial turmoil and slowdown, these customers were unable to clear their dues. So in order to check further defaults in the segment, the company is considering a restructuring of its card-portfolio.
In its restructuring process, the firm is likely to increase the loan tenure and revise interest rates to help customers, said the company's CEO, Diwakar Gupta.
Currently the company is charging between 3.1% and 3.5% per month on its credit cards dues and now it plans to scale down this rate to around 2.5% per month. The CEO however confirmed that there are no further fears of defaults as they are working as per the industry standards and moreover its delinquencies are lower than the average delinquencies in the industry.
The company has also decided to launch a co-branded credit card with Dena Bank in order to enhance its SBI Cards & Payments Services. Dena Bank has a customer base of 10,000 customers in its credit card segment.
SBI Card Executive Director, Bhaskar Sen said that in a view to boost its banking services, the company intends to join with professional organization for credit card business.