Abn Amro Unveils Card

ABN Amro Bank NV has launched its credit card in India in alliance with MasterCard International.

Romesh Sobti, executive vice-president and country representative (India), ABN Amro Bank, said: "This was the missing link with our consumer and it also happens to be the strongest hook to strengthen our retail and asset gathering franchises as they form the core strategic foundations of our group."

ABN Amro is keenly eyeing the industry growth of 15 to 20 per cent in the number of credit cards, with annual billings rising by 30 per cent. "It is never late to enter an emerging market as shares are never frozen," said Sobti.

Answering to whether the bank would choose to pick up credit card portfolios, Sobti said, "There are few good portfolios available and these are with the big players, who will never want to sell. We will grow our card division organically."

In its half-yearly performance, the management of global bank has highlighted its commitment to increase presence in India through organic growth and selective acquisitions.

ABN Amro has opted for MasterCard as its strategic partner because of the latter's commitment to share expertise in creating a common platform where issuing banks would share information on defaulters. "This is critical to the success of a business," Sobti said.

Sameer Vakil, vice-president and country manager (south Asia), MasterCard International, said although the company has been operating in India for the past 12 years, only 25 to 30 per cent of tax payers have their cards. "This illustrates the immense potential," he added.

ABN Amro will also issue a range of credit programmes of MasterCard, including gold and standard electronic cards, in India.