The Hindu Business Line : PNB to go solo on credit card before November

New Delhi, April 14 Punjab National Bank plans to roll out its own credit card product much in advance of November, when its existing co-branding tie-up with HSBC is due for expiry.

Faced with delays in regulatory clearances, PNB has now dropped the joint venture route for launching its credit card business. “The credit card business would now be an in-house departmental activity for us. I cannot wait indefinitely (for regulatory approvals for joint venture). If need be, we can always form a joint venture subsequently,” Dr K.C. Chakrabarty, Chairman and Managing Director of PNB, told Business Line here.

Although the tie-up with HSBC was valid till November 2008, it would expire the moment PNB launches its own credit card. “That is why we want to hurry up and launch it much before November 2008,” Dr Chakrabarty said.

Credit assessment was an important reason for the PNB-HSBC tie-up turning somewhat sour. As the card issuer, HSBC played the dominant role and did the credit assessment. PNB had very little role in credit assessment. “As the card issuer, I will do the credit assessment. Till yesterday, I could not assess my customers,” he noted.

SAARC presence

Meanwhile, PNB has chalked out plans to establish presence in the entire SAARC region. The bank may also eye African and Latin American markets, where many Indian banks do not have a footprint.

“Wherever Indian population goes and Indian trade goes, we will go there. We are looking at Indonesia, Norway, Australia and New Zealand. Next stage, we may look at Africa and Latin America,” Dr Chakrabarty said.

PNB already has international presence at London, Hong Kong, Kabul, Shanghai, Almaty and Dubai.

The bank’s application to enter Canada has been pending for more than two years. In the SAARC region, PNB has a presence only in Nepal through a joint venture.

“We expect some progress this year in our efforts to have presence in the entire SAARC region. Whether it will be through a branch or joint venture depends on the local regulatory regime in each country,” Dr Chakrabarty said.

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PNB to go solo on credit card before November