SBI Prunes Customer Base

SBI along with GE Finance had introduced the concept of credit cards in late 90s. However, only after a decade the company went aggressive and is still loss making due to defaults and delinquencies. SBI turned cautious and started pruning customers who have defaulted or were on the verge of it.

According to Data obtained from RBI, SBI had 2.65 Mn Credit Card users at the end of 2009. However the number has gone down to 2.26 Mn at the end of Dec-2010, a cut of 17% in its customer base.

However, the story for Debit Cards linked to Customer Bank Accounts is entirely different. The bank has 67 Mn Debit Card holders at the end of Dec-2010, compared to 51 Mn a year ago, an increase of 31%. The banks strategy off late has been to encourage customers to use Debit card and earn loyalty points which was only existent for the Credit Card customers earlier - A good move in our opinion.

You can discuss more about SBI cards on dedicated forum here.

Debit Loyalty Program a Big Hit

SBI's Debit Card Loyalty program is a Big Hit after 9 months into vogue. This is the first time in India that a PSU Bank has taken a lead in introducing a product for the masses well ahead of its private bank competitors.

The Debit Card loyalty program began as SBI's Credit Card venture with GE Money suffered massive losses. The bank addressed the hurdles that were in the way of Debit Card not being used by a deeper tie-up with VISA and MasterCard [in India not all cards come with VISA / MasterCard, banks provide plain vanilla ATM cards] and bingo! the outcome is amazing.

After the introduction of the program SBI's debit card customer base shot up from 51 million to a whopping 68 million. The average number of swipes at PoS terminals went up from 1.2 mn to 2.2 mn every month.

Punjab National Bank which launched its Credit Card a year ago is now planning to copy the SBI model for debit cards. Wait a minute, its not just PNB, but even the big-wigs like Citibank, Deutshce are all set to replicate SBI's debit card loyalty points program.

Bircla Credit Cards to be Powered by SBI Cards

All Aditya Birla Group Companies from Retail - More Supermarket, Madura Garmenmts - Louis Phillipe etc to Financial services [Birla Sun Life] will launch their own Credit Card to encourage loyalty offers and lure customers to the platform.

Birla Credit Cards will be powered by SBI Cards which will act as the Bank and Card Issuer. This is the first major Co-branding by SBI cards.

With the Credit Card industry still evolving with regulations and reforms, Aditya Birla Group well known for financial muscle and intellect are staying away from the associated risk and passing it on to SBI. However, SBI is a veteran in the industry having learnt its lesson in association with GE by going aggressive in the market and hence will be over cautious in handing out cards to every second person.

Free Consulation Dr Batras + Rewards

Dr Batras has tied up with SBI Group Cards. They are offering the first consultation for FREE which can be worth Rs 1200 by just flashing your SBI Debit Card. You can register for the same here. Additionally, for every Rs 100 you spend at Dr. Batras you earn 10 Freedom points as they have become national partner with SBI.

UniverCell, online mobile retailer, has become a regional partner with SBI Cards and thus every purchase involving mobile, accessories, plans etc you will gain 4 Freedom Points / Rs 100 spent.

Now where to redeem these FreedomPoints ?
FameCinemas is one of the best location to spend what you have earnt on your card :-) Or if you want to know more on redeeming them, you can call - 6000 8500 or 1800 209 8500

Freedom Rewardz - John Players + Provogue

During this holiday season SBI Freedom Rewardz would like to brighten up your festive spirit with some very exciting & exclusive benefits only on your State Bank of India Debit Card.

Start off the celebrations by shopping with 2 new accrual partners - John Players & Provogue and earn 10 FreedomPoints for every Rs. 100 spent. Catch the latest blockbusters at a Fame cinema by redeeming your Freedom Points for free movie tickets!

Do let us know your Holiday Shopping Experience.