Tag: federal bank

Banks step up credit card sales, offers in festive season as BNPL threatens, BFSI News, ET BFSI

Banking & Finance

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With the Covid pandemic weakening and consumer confidence rising, banks are betting on credit card spends this festive season. Lenders have launched a slew of new credit cards and offers to solidify their positions and grab a bigger share of the market.

The credit card push comes at a time when buy now-pay later (BNPL) products have become popular with consumers. BNPL essentially offers around 15 days of interest-free funds to small borrowers and are seen as competitors of credit cards.

SBI offering

Banks step up credit card sales, offers in festive season as BNPL threatens

SBI Card is luring consumers with 10% cashback up to Rs 10,000 across mobiles, consumer durables, laptops, kitchen appliances, home décor & furnishing, and fashion & lifestyle purchases, done at leading domestic e-commerce shopping sites. The offerings are not restricted to just one or two e-commerce portals

However, the offer will not be applicable on online spending in some categories such as insurance, travel, wallet, jewellery, education, healthcare, and utility merchants.

HDFC Bank

Banks step up credit card sales, offers in festive season as BNPL threatens

HDFC Bank and digital payments firm Paytm will launch a range of credit cards powered by Visa this month. The partnership aims to provide one of the widest range of offerings across customer segments, with special focus on millennials, business owners and merchants. Under the partnership announced in August, the two will build comprehensive solutions across payments gateway, point of sale machines, and credit products.

The cards announced today will be customised to meet the distinct needs of retail customers, from new-to-credit users to affluent users and offer rewards and cashback for users. The new cards offering will also facilitate small business owners.

Federal Bank cards

Banks step up credit card sales, offers in festive season as BNPL threatens

Kochi-based private lender Federal Bank entered the credit card business in September in association with card network Visa. The bank has partnered with National Payments Corp of India to launch ‘Federal Bank RuPay Signet Contactless Credit Card,’ according to a press release.

The card’s annual percentage rate starts from 5.88% per annum. Cardholders will gain access to a wide range of offers and deals across categories including travel, food, among others, the bank said. The card is currently being offered to existing customers of Federal Bank.

According to the Reserve Bank of India (RBI), the total number of credit cards stood at 63.4 million at the end of July.



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Federal Bank records 10% loan growth in Q2, BFSI News, ET BFSI

Banking & Finance

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Private sector lender Federal Bank on Sunday said it has posted a 10 per cent growth in advances at Rs 1,37,309 crore for the second quarter ended September 30. Total advances stood at Rs 1,25,209 crore at the end of the second quarter of the last financial year, Federal Bank said in a regulatory filing.

The bank’s deposits also rose by 10 per cent (Y-o-Y) to Rs 1,71,995 crore in the quarter from Rs 1,56,747 crore in the same period a year ago, it said.

Federal Bank’s low-cost deposits–current account and saving deposits(CASA)-were up by 18 per cent to Rs 62,191 crore.

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Not one PSU bank in the top 5 lenders with lowest NPAs, BFSI News, ET BFSI

Banking & Finance

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Among Indian banks, HDFC Bank has stayed on top of the list of lenders with the lowest non-performing assets.

However, there is not a single public sector bank in the top five banks with the lowest NPAs.

HDFC Bank, which has reported more than 20 per cent YoY profit growth every quarter for over 40 quarters, has never crossed 0.5 per cent of loans in net non-performing assets. In its latest quarterly results, the bank’s net NPA ratio stood at 0.48%.

For retail loans, the bank relies on the model of wide franchise and low-cost deposit base, which ensures good pricing power and sustainability of above average net interest margins.

IndusInd Bank

The second number is held by IndusInd Bank. In its latest quarterly results, the bank’s gross non-performing assets (GNPAs) stood at 2.88 per cent as it was impacted by the second wave of Covid-19 while the net NPA ratio rose 15 basis points sequentially to 0.84 per cent.

The bank leads in certain retail asset classes with a pan India franchise which gives it strength to manage the asset quality in those segments.

ICICI Bank

The third bank on the list is ICICI Bank, which despite a rise in slippages, saw the net NPAs staying lower at 1.14 per cent as on March 31, 2021, against 1.54 per cent as on March 31, 2020. In its latest quarterly results, the bank reported a net NPA ratio of 1.16 per cent.

Federal Bank

The next on the list is Federal Bank that saw gross NPAs rise to 3.5 per cent and net NPAs increase marginally to 1.23 per cent largely due to the Covid-19 related challenges faced by borrowers in the latest quarterly results.

In fiscal 2021, Federal Bank exhibited a decline in NPAs due to diligent selection of borrowers, while its slippage ratio fell to 1.6%, lower than 1.7% in 2020.

Kotak Mahindra Bank

Kotak Mahindra Bank, the third largest Indian private sector bank by market capitalisation, has seen net NPAs consistently below 1.5 per cent. In its latest quarterly results, the bank’s asset quality weakened as gross NPAs stood at 3.56 per cent. However, net NPAs still came in below 1.5 per cent. The bank’s loan book has grown at a CAGR of over 25% over the past decade, which has been supported by a healthy contribution of low-cost deposits.



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Federal Bank launches contactless credit card

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The card comes with the lowest annual percentage rate, starting at 5.88% per annum, the bank said.

Federal Bank on Monday launched the ‘Federal Bank RuPay Signet’ contactless credit card in association with the National Payments Corporation of India (NPCI) .

Virtually launching the card, Shalini Warrier, the bank’s executive director & business head- retail, said, “Federal Bank has, yet again, ensured that the mantra of ‘Digital at the fore, human at the core’ comes to life via this latest offering, the RuPay credit card.

This card is also a symbol of our strong partnership with NPCI, an entity known for innovation in the retail payments space.” The card comes with the lowest annual percentage rate, starting at 5.88% per annum, the bank said.

Praveena Rai, COO, NPCI, said, “… This card has significant potential to attract new-age customers as it has a complete package of benefits suiting their lifestyle backed up with an innovative cashback scheme. At NPCI, for RuPay, we continue to work towards offering a delightful and contactless shopping experience to all our customers. We also believe our association with Federal Bank will provide a wider penetration of RuPay contactless cards in the country.”

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Federal Bank partners with NPCI for RuPay credit card

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Federal Bank has partnered with the National Payments Corporation of India (NPCI) to launch the Federal Bank RuPay Signet Contactless Credit Card.

“One of the major highlights of this card is, it comes with the lowest Annual Percentage Rate (APR) starting from just 5.88 per cent per annum,” the private sector lender said in a statement on Monday.

At present, the card is offered to existing customers of the bank.

The bank has adopted a ‘Digital First’ and the card immediately made available for use in FedMobile. The physical card will be delivered to the customer in due course.

Federal Bank had launched credit cards for existing customers in June this year and had an exclusive tie-up with Mastercard. This had got impacted after the Reserve Bank of India barred Mastercard from acquiring new customers.

Shalini Warrier, Executive Director, Federal Bank had said in July that the bank would restart issuance of credit cards within two months and was in talks with both Visa and RuPay.

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Federal Bank partners with Ashok Leyland for vehicle finance

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Federal Bank on Wednesday signed a Memorandum of Understanding (MoU) with Ashok Leyland, which will enable the two to offer customised financial solutions to their customers.

“The bank will work towards catering to the customers’ needs through commercial vehicle loans with easy monthly repayment plans best suited for the customers. Moreover, the bank will leverage technology for enhancing customer experience,” Federal Bank said in a statement.

Harsh Dugar, Group President, Federal Bank said, “In our bank, funding to commercial vehicles is offered through dedicated RMs and wide network of branches. With this partnership, we will be able to offer our financial solutions by leveraging the bank’s extensive physical and digital reach to the customers of Ashok Leyland and its dealers.”

Ashok Leyland offers a comprehensive range of trucks and buses ranging from intercity light commercial vehicles to 49-tonne long haul trucks and a wide range of buses.

Gopal Mahadevan, Whole Time Director and CFO, Ashok Leyland, said this association would help the company gain an edge in the market.

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Mastercard ban boosts Visa’s biz, BFSI News, ET BFSI

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Mumbai: Visa is consolidating its leadership in the Indian credit card market with most issuers who had partnered with Mastercard earlier signing up with it to continue issuing credit cards.

Shares of RBL Bank, the latest to sign up with Visa, rose over 2% on Tuesday after the private lender announced that it has signed up with Visa to issue credit cards. RBL has a 5% share of the Indian credit card market, which is disproportionate to its size due to its partnerships for co-branded cards, particularly the one with Bajaj Finserv.

“We would like to thank Visa as well as Finserv, our technology partner, for enabling this journey. With this launch, we are confident of meeting our annual plan of issuing 1.2-1.4 million credit cards in FY22,” said RBL Bank head (retail, inclusion & rural business) Harjeet Toor.

Like RBL Bank, Yes Bank and Federal Bank have said that they will start issuing Visa credit cards. Both private lenders have said that they would also be issuing RuPay credit cards.

What will help Visa gain more market share is the lifting of the ban on HDFC Bank from issuing credit cards. The embargo on HDFC Bank on issuing cards was lifted soon after Mastercard received a ban from RBI for not adhering to norms that require customer data to be stored only in India. HDFC Bank is the largest issuer of credit cards in the country and the lifting of the ban is expected to spur pent-up demand from its customer base.



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Federal Bank partners Visa after Mastercard embargo, BFSI News, ET BFSI

Banking & Finance

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Mumbai: Federal Bank on Friday announced its association with Visa to launch new credit cards following the RBI’s embargo for fresh cards on the Mastercard network until the company complies with data-localisation norms.

The private lender said that it will offer credit cards with interest rates as low as 5.9% per annum. According to the bank’s website, the dynamic annual percentage rate, or APR, ranges from 5.9% to 41.9% per annum with the lowest for those who maintain an average minimum balance of over Rs 10 lakh. The interest rate would rise with the reduction in the average minimum balance maintained by the customer in his account. For instance, customers maintaining balances above Rs 3 lakh are entitled to interest rates of 18% per annum and those maintaining an average balance over Rs 50,000 will be billed at 30% per annum.

Under its partnership with Visa, the bank offers three cards — Celesta, Imperio and Signet, each of which is designed to cater to the needs of different segments of customers. Celesta card is targeted at HNIs, Imperio is for family-oriented customers, and Signet is targeted at young, early professionals.



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Federal Bank launches credit card in partnership with Visa

Banking & Finance

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The three variants of the card are named Celesta, Imperio and Signet, each of which is designed to cater to the needs of different segments of customers.

Federal Bank on Friday launched its credit card in association with Visa. The bank is also on course to launch variants of the Rupay credit card in association with the National Payments Corporation of India (NPCI).

The card, which comes in three variants, is packaged with a range of offers, and is currently being offered to existing customers of the bank.

Shyam Srinivasan, MD & CEO of the bank, said, “Our credit card is completely digital with a 3-click application approach which would make the card instantly available for use on FedMobile, our mobile banking application. We are glad we could take this digital leap and provide consumers with the convenience they expect. We are delighted to bring forth our credit card to customers in partnership with Visa.”

The three variants of the card are named Celesta, Imperio and Signet, each of which is designed to cater to the needs of different segments of customers. Celesta card is targeted at HNIs, Imperio is for family-oriented customers and Signet is targeted at young, early professionals.

To equip customers with the best facilities in the industry, the bank will be offering them credit cards with the lowest dynamic annual percentage rate starting from 0.49% per month (5.88% per annum).

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Federal Bank launches credit card in association with Visa

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Federal Bank launched its credit card in association with Visa in a bid to to improve unsecured, high-yielding book and complete the suite of banking products it offers.

The private sector bank has launched three variants of the card — Celesta (for high net worth individuals), Imperio (for family oriented customers) and Signet (targeted at young, early professionals), a statement said.

According to the product brochure, the interest per month on the uncleared credit card dues starts from 0.49 per cent. This works out to an annualised percentage rate of 5.88 per cent.

Shyam Srinivasan, MD & CEO, Federal Bank said: “Our credit card is completely digital with a 3-click application approach which would make the card instantly available for use on FedMobile, our mobile banking application.”

Immediate availability on app

The card is immediately available for use in FedMobile, the bank’s mobile banking application, and the physical card will be delivered in due course.

The bank is also planning to launch variants of the RuPay credit card in association with the National Payments Corporation of India (NPCI).

TR Ramachandran, Group Country Manager, India and South Asia, Visa, said: “With the number of credit cards in the country currently far lower than credit eligible customers, we see great potential in partnering with the bank to scale up through such partnerships and offering consumers the convenience and benefits of paying by credit cards.”

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