homemarket NewsRBL Bank looking to further reduce dependence on Bajaj Finance partnership: Exclusive
RBL Bank looking to further reduce dependence on Bajaj Finance partnership: Exclusive
On November 15, the RBI had asked Bajaj Finance to immediately cease the sanction and disbursal of loans under its 'eCOM' and 'Insta EMI Card' lending products.
Mumbai-based private lender RBL Bank Ltd. is actively scouting for NBFC partners to increase card insurance penetration, sources with knowledge of the matter told CNBC-TV18.
The bank is also looking to further reduce its dependence it has on its partnership with Bajaj Finance.
Earlier this month, the Reserve Bank of India introduced new guidelines aimed at providing more options and flexibility for credit card customers. The central bank mentioned that card issuers must allow eligible customers to choose from multiple card networks at the time of card issuances.
The RBI specified that card issuers are not allowed to enter into any agreements with card networks that restrict them from accessing services offered by other card networks.
RBL Bank has not responded to CNBC-TV18's query.
CNBC-TV18 had reported in December last year that the RBI had granted a one-year extension for Bajaj Finance and RBL Bank's co-branded cards, less than what both parties had requested for. The extension is valid till December 21, 2024.
In response to CNBC-TV18's query, RBL Bank mentioned that both RBL and Bajaj Finance have a long-standing co-brand partnership agreement which was renewed in 2021 for a period of five years. "We continue to issue the co-branded cards in-line with the RBI guidelines," the response stated.
On November 15, the RBI had asked Bajaj Finance to immediately cease the sanction and disbursal of loans under its 'eCOM' and 'Insta EMI Card' lending products.
Back then, brokerage firm Motilal Oswal had mentioned that the co-branded cards with Bajaj Finance accounted for 60% to 65% of RBL Bank's total credit card issuances.
RBL Bank was also in the news recently where Mathew Cyriac had acquired 0.5% stake in the lender via block deals.
Shares of RBL Bank are trading lower by 1.5% at ₹252.20. The stock has risen 71% over the last 12 months.
(Edited by : Hormaz Fatakia)
First Published: Mar 11, 2024 12:55 PM IST
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