BackYes Bank launches 7 credit cards
Yes Bank, India's fifth largest private sector bank, launches 7 credit cards in partnership with MasterCard to boost its retail banking business
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Mumbai: India’s fifth largest private sector bank, Yes Bank Ltd, on Tuesday launched seven credit cards together to boost its retail banking business in partnership with MasterCard. The cards come in two categories, where one is Yes Prosperity range under which there are five credit cards and the other is Yes First range under which there are two credit cards. The Yes First range is available for its high networth customers.
“This is a natural extension of retail business. We are giving highest interest rate on savings among large banks and offering lowest interest rates on credit card in the industry. By fiscal year 2020, we will be the top three credit card players of the country with 15-18 % market share," said Pralay Mondal, senior group president of retail and business banking of Yes bank.
Yes Bank will be offering interest rate of minimum 1.2% per month on its credit cards for which high networth customers are eligible. The industry average stands at 3.4% per month.
As on March 2016, there are 24.50 million credit cards in the country with HDFC Bank Ltd. leading the chart at 7.28 million, followed by ICICI Bank Ltd at 3.65 million and SBI Bank Ltd at 3.62 million.
Mondal said that “market share is skewed which provides opportunity for us. The current credit penetration is 2% in the country which is expected to be 5% in next five years. The incremental 3% growth provides huge opportunity for new players like us. We are entering into the business when all stakeholders, whether it is government, regulator, customer is driving electronification process." It is estimated that cash transactions will come down to 60% by 2020 from 80% in 2015.
When talking about risk management, Mondal said that if underwriting process is properly done, there will be no difference in the quality of portfolio of bank’s customer or customers acquired from outside.
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