Mumbai: In a change of course, Kotak Bank has announced that it will expand its unsecured loans, including credit cards, at full speed. During the early stages of the pandemic, private lenders withdrew unsecured loans and were cautious about this segment.
“At the beginning of Covid, when we were dealing with a lot of unknown strangers, we wanted to see how the pandemic developed. Unsecured is now a very central business for us. The unsecured part of our balance sheet is very small, which gives us enormous scope for growth. We are extremely optimistic and are taking several initiatives to increase both unsecured credit and unsecured credit cards, ”said Ambuj Chandna, President of Kotak Mahindra Bank (Consumer Assets).
“We have 25 lakh cards, of which we issued more than one lakh in October alone,” said Chandna. He spoke to Indigo about the launch of a new co-branded credit card. Chandna said quarter-over-quarter growth was around 13% for the three months ended September.
Speaking at the event, William Boulter, IndiGo’s chief commercial officer, said domestic traffic had fallen back to 98% of pre-pandemic levels, while international tourist traffic was half what it was before. “We are inexpensive, but not cheap. The introduction of the credit card shows that we are trying to appeal to customers across the board and not just those who fly economy, ”said Boulter.
The partners have launched two new cards – the Kotak IndiGo Rewards 6E Ka-ching and a premium version of the same card. The basic card has a fee of 700 rupees, which is more than covered when customers take advantage of the 1,500 rupee welcome offer for an IndiGo ticket. The basic cards generate 3 reward points for every Rs 100 spent on IndiGo, while the premium version generates 6 reward points. The awards can be used for airline tickets. The Premium Card has a fee of Rs 2,500 (Rs 1,500 introductory offer) against which customers receive Rs 3,000 for a welcome ticket.
Chandna said there are signs that the pandemic is headed towards endemic and that the credit card business is likely to grow similarly to air travel in India. “We believe maps will go the way of aviation. We believe the credit card business in India is at this turning point, ”said Chandna. The bank had previously partnered with PVR for a co-branded card.

Tags : credit cardsunsecured loans
Richard Dement

The author Richard Dement