IndusInd Bank in race to buy Deutsche Bank’s credit card biz

IndusInd Bank in race to buy Deutsche Bank’s credit card biz

New Delhi: Private sector lender IndusInd Bank is in the race to buy Deutsche Bank’s credit card business in India and hopes to finalize a deal in the next few weeks.

IndusInd Bank, along with Axis Bank, Dhanlaxmi Bank and Karnataka Bank, have evinced interest in acquisition of the credit card business of Deutsche Bank, sources said.

A deal is likely to be finalized in the next few weeks, sources added.

When contacted Deutsche Bank and IndusInd Bank declined to comment on the issue.

As a precursor to its entry into the credit card business, IndusInd Bank appointed Anil Ramachandran as the head of its cards business in November last year.

Ramachandran has already commenced setting up the credit cards business of the bank. Incidentally, Ramachandran was with Deutsche Bank as head of the credit cards business for India.

Earlier, he had worked for Citibank, where he was also associated with the credit card function in various senior positions.

As far as the credit card business is concerned, transactions worth Rs6,934.65 crore were carried out in January 2011, registering a growth of 27.82% vis-a-vis the same period last year.

Credit card transactions during January 2010, were at Rs5,425.51 crore, according to the RBI data.

The number of credit cards in circulation have, however, declined by over 10% to Rs1.81 crore as on 31 January 2011, from 2.02 crore in the same period last year.

During the April-January period of this fiscal, the total transactions carried out via credit cards increased by 21.78% to Rs62,335.44 crore from Rs51,188.94 crore in the same period a year ago.