Partnership Termination
RBL Bank and Bajaj Finance have mutually agreed to discontinue issuing new co-branded credit cards after extensive discussions.
- The decision reflects a change in the partnership’s synergies over time.
- This move aims to realign RBL Bank’s strategy towards independent growth and other collaborations.
Impact on Existing Cardholders
Current customers with co-branded credit cards will not face any immediate impact.
- Existing cards will continue to function with the same terms and conditions.
- Upon renewal, cards will be reissued as RBL Bank-branded credit cards, ensuring uninterrupted usage.
Growth in RBL’s Issuance Capabilities
RBL Bank has significantly enhanced its independent credit card issuance efforts in the last 18 months.
- The bank now relies more on direct channels and newer partnerships for card issuance.
- Co-branded card issuance with Bajaj Finance dropped from 1.26 lakh in September 2023 to 37,000 in September 2024, showcasing reduced dependence.
Significance of the Partnership
The collaboration with Bajaj Finance was a key component of RBL Bank’s credit card portfolio.
- Approximately 3.4 million co-branded credit cards were issued during the partnership.
- Despite the discontinuation, RBL Bank assures seamless support and satisfaction for existing cardholders.
Market Reaction
The stock market reflected mixed sentiments following the announcement.
- RBL Bank’s shares closed 1.6% lower at ₹154.98.
- Bajaj Finance shares, however, rose by 1.02%, closing at ₹6,575.90.
This strategic move by RBL Bank signals a shift towards bolstering its independent credit card issuance capabilities and diversifying its co-branding ventures. Existing cardholders can remain confident about uninterrupted services, while the bank explores new growth opportunities.