Monday, December 21, 2009

Birla, SBI tie up for co-branded cards

The Aditya Birla Group has forged an alliance with SBI Cards to rollout co-branded cards. The group plans to launch these cards in the next four to six weeks.

This tie-up would cover group companies and look at strengthening its financial services play through this partnership, said Ajay Srinivasan, Chief Executive, Financial Services, Aditya Birla Group. Co-branded cards are credit cards, which are associated with a particular firm such as an airlines or retail outlet. They offer benefits like frequent travel points and special discounts.

Srinivasan said the aim is to reach 60 million retail customers being served by group companies like idea cellular and other retail businesses. The $29-billion group has substantial retail customers in financial services – insurance and asset management, telecom.

SBI Cards official said its outstanding card base is 3 million. It would like to cover one million Birla group customers in the medium term, he added. Co-branded card constitute 20-30 per cent of its card business.

SBI Cards is a 60:40 joint venture between State Bank of India and GE Capital has a market share of over 12 per cent. It has similar partnership with organisations like Indian Railways and Spice Jet.


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