HDFC Bank Launches Co-Branded Credit Card With IndiGo
Labelled Ka-ching, the card will offer many benefits like complimentary air tickets, lounge access, 5 percent cashback or reward points on Indigo bookings, and 3 percent cashback on dining, grocery, and entertainment, the companies said. With over 14 million active cards, HDFC Bank is by far the largest credit card issuer in the country, and hopes to sell 1 million Ka-ching cards over the next three years.
Parag Rao, head of the cards business at the bank, told PTI that around 20 percent of its total cards are co-branded, and such cards see around 30 percent more spending. The bank also has similar tie-ups with Walmart and Times Group. It also had a similar card with the now-defunct Jet Airways.
Rao said travel and hospitality contribute 12-13 percent of the total spend on the bank's credit cards. Regarding the delinquency rate in the cards business, Rao said like the parent HDFC Bank, which has the best asset quality with under 1.5 percent bad loan levels, cards business also has the lowest non-performing assets levels.
He, however, did not quantify it in percentage. IndiGo Chief Commercial Officer William Boulter said this is the first such tie-up for the airline and expressed hope that the Ka-ching card will help it increase customer satisfaction.
The premium variant of the card offers complimentary air tickets worth Rs 1,500-3,000, apart from a host of other benefits, and can be redeemed against its tickets, Boulter said. He said customers can also earn 10-15 percent rewards on dining, shopping, transport, the medical bill spends with featured partners, apart from priority check-in, seat choice, and complimentary meals.
The card is being launched in partnership with Mastercard, which is the largest issuer for HDFC Bank, Rao said. Porush Singh of Mastercard said the Ka-ching card comes with the highest safety standards. He said co-branded cards constitute as much as 30 percent of total cards in the company's home market in the US.