SBI Card looks to increase biz flow from co-branded cards

Aims to grow share in business to 33% by 2020 from 15% now

SBI Card, a subsidiary of the State Bank of India, is aiming at increasing its co-branded card business, on expectations of replicating the robust performance of its partnership with the Future group.

The card-issuing company expects to more than double the share of revenue from the co-branded card segment to 32-33 per cent of the total by 2020. It is about 15 per cent now.

The arrangement is that SBI Card issues retail cards with which purchases can be made at the outlets of the Future group.

Vijay Jasuja, chief executive, SBI Card, said the experience with the co-branded card for Big Bazaar, a unit of the Kishore Biyani-controlled Future group, had given the concern the confidence to scale up its business and was looking at more alliances.

The first tie-up with the group happened in December 2014. 

The card, which is valid for products in the fashion category, is targeted at the value-conscious consumer and has become the fastest-growing and largest retail co-branded card in the country.

Jasuja said the card company wanted to move into premium categories such as leisure and lifestyle.