RBL Bank's Strategic Shift: Ending the Bajaj Finance Partnership

RBL Bank has officially ended its credit card distribution partnership with Bajaj Finance, aiming to regain its sales pace within a quarter. The bank plans to leverage its own team for half its card sales, minimizing impact. It eyes diversified product sales to its 54 lakh customer base.

In a strategic move, RBL Bank has announced the termination of its long-standing credit card distribution partnership with Bajaj Finance. The bank expects to regain momentum in new card sales within the next quarter, according to a senior official.

RBL Bank, over the past 18 months, has reduced its reliance on Bajaj Finance, which once facilitated 80% of its monthly credit card sales. Currently, only 30% of its cards are co-branded under this partnership. Despite the end of this alliance, income generation and the quality of the credit card portfolio are expected to remain unaffected.

The bank plans to capitalize on its own distribution network, seeking to offer more products from its portfolio to the existing customer base of 54 lakh credit cardholders. Additionally, recent partnerships with entities like IRCTC and Mahindra Finance are anticipated to sustain the distribution momentum.

(With inputs from agencies.)