The Hindu Business Line : BoB keen to expand credit card base

BANK of Baroda is looking for a partner to provide backroom processing and planning to set up a joint venture for its wholly owned card subsidiary Bobcards. The bank is looking to boost its credit card base from 1.5 lakh to 10 lakh by March 2007, said Dr A K Khandelwal, Chairman and Managing Director, Bank of Baroda.

The partner for the joint venture will be decided in the next four to five months, he said.

The bank will also finalise its partners for its proposed life insurance subsidiary in the next two months, Dr Khandelwal said. He was speaking to reporters at a function to inaugurate Bobcards' 33 facilitation centres. This is likely to increase to 100 by March 2007.

BoB plans to increase its deposit growth from 9 per cent to 18 per cent by the end of this fiscal. It has no immediate plans to increase lending rates as of now, Dr Khandelwal said.

The company is focusing on segments like women and youth to increase its card base and is also targeting Tier-II and Tier-III cities. Bobcards is also planning to tie up with professional colleges for credit cards for students.

The bank has 60 per cent of activation in its cards, said Mr S.P. Garg, Managing Director, Bobcards.

"In the last one year, our activation has improved because of proper selection of customers and direct contact," he said.

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