Federal Bank is ready to launch credit cards in next few months

Federal Bank is set to launch credit cards within few months and remains bullish about growth opportunities on the retail portfolio.

“We are in the process of getting into credit cards. In a couple of months from now, we will be there,” said Shalini Warrier, Executive Director, Federal Bank.

The bank has tied up with Mastercard and will initially start issuances for its own customers.

We have a very good customer base. Once we have made enough inroads into our existing customers, at some point we will start new to bank business Warrier told Business Line, adding that between personal loans and credit cards, the portfolio will grow and that will help contribute to the return on assets.

Noting that the bank offers personal loans only to existing customers, Warrier said the portfolio is small and it will never be a very big portion. “But clearly, there is a need to increase that a little bit,” she said.