The Hindu Business Line : Corporation Bank to foray into credit cards business

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New Delhi, Jan. 26 Corporation Bank's credit card business is likely to take off in February this year. It has decided to tie-up with Visa International for this purpose.

"We will launch it in a month or so. All groundwork has been completed. The credit card business would function as a division of the bank," Mr B. Sambamurthy, Chairman and Managing Director of the bank told Business Line, when asked whether a separate subsidiary would be set up for the credit card business.

Public sector banks have adopted different entry strategies for their foray into credit card business. While some of the banks like Corporation Bank have preferred not to opt for the subsidiary route, there are others who are keen on subsidiary route so that they could rope in joint venture partner for such a business.

Corporation Bank had in July last year announced intent to enter into credit card business. With a customer base of about 44 lakh, the bank sees lot of potential for selling its credit card product to these customers.

Meanwhile, Corporation Bank is also looking to enhance its presence in North and Western India by setting up more branches. In the current fiscal, corporation bank proposes to add 70 new branches to its network. It has already opened 43 new branches in the first nine months of the current fiscal.

The total number of branches oas on December 31, 2006 was 878 and the number of ATMs stood at 924.

Retail credit increased by Rs 1,039 crore from Rs 5,809 crore as on December 31, 2005 to Rs 6,848 crore as on December 31, 2006.

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