Bank of India is reportedly planning to open a credit card subsidiary in the country, in order to attract young customers and push towards retail banking, an area where it expects growth over the coming years.
Bank of India chairperson VR Iyer was quoted by Livemint as saying that the bank is likely to float a separate subsidiary to sell Bank of India cards, but a joint venture (JV) with an experienced credit card business vendor could also be explored such as the SBI Card, a JV between State Bank of India (SBI) and GE Money.
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"We are still evaluating the right business model but I do have it in mind to explore a differentiated strategy and may consider floating a subsidiary or collaborate with technical partners with relevant expertise and experience," Iyer added.
Bank of India, which currently has around 50,000 credit cards, plans to initially target its existing customers and then attract others in the future.
According to Iyer, cards will play a significant role in consumer transactions in the future and their large and extensive consumer base will provide a captive market.
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