India-based Bandhan Bank has rolled out a co-branded credit card in collaboration with Standard Chartered bank.
The bank, which was a micro-finance institution earlier, will provide the credit card to its four million savings account customers through its 1,000 offices located across India.
As per the terms of the agreement, Standard Chartered bank will bear the credit risk whereas Bandhan Bank will recognise and issue credit cards to its saving bank account holders.
The co-branded credit card has been introduced in three variants: One – for the mass market, Plus – for the wealthy customers and Xclusive – aimed at the premium segment.
Standard Chartered CEO Zarin Daruwala told The Hindu BusinessLine that the growth of current account and savings account (CASA) of the Bandhan Bank over the last four years encouraged StanChart to partner for this credit card programme.
Standard Chartered has for the first time introduced a co-branded card with any other bank.
Bandhan Bank managing director and CEO Chandra Shekhar Ghosh told the publication: “When the bank started four years ago, we started with basic products. We kept adding more products as we moved ahead. Today, we launch credit cards, a product that many customers demanded from us.
“Standard Chartered bank’s expertise, experience, and foreign exposure will help bring our customers a well-rounded credit card offering.”
In January 2019, Bandhan Bank agreed to acquire HDFC’s housing finance business Gruh Finance.
The deal, which is subject to approval by the National Company Law Tribunal (NCLT), will enable the bank to expand its footprint in the affordable housing sector in the country.