One year back Tata Capital, a finance company was launched offering a suit of financial products. Now Tata Capital will be venturing into credit card business of the Tata group, with an aim to boost its product portfolio targeted at retail and institutional customers.
In February 2006 first Tata card, the country’s first white label credit card was launched, in association with SBI, that marked the group's re-entry into plastic money business. But in 2003, Tata group company —Tata Finance — sold its credit-card business to ICICI Bank- country's largest credit card issuer with over 8 million customers.
A Tata group executive informed that Tata Capital's possibility of managing the credit card venture from Tata Son's can not be ruled out in future, as it is more synergic to Tata Capitals retail finance operations which offer personal, car and home loans.
The exact number of cardholder base of the Tata card can not be ascertained, the card was launched to tap the huge employee and customer base of the Tata group by rewarding them each time they buy a Tata Indica car to Titan watch to Voltas air conditioner. On a White label card, the logo of the issuer is not show on it as against a co-branded credit card, which bears the logos of the alliance partners. The group has employs around 3.50 lakh people worldwide.
Currently SBI card is having a base of around 3 million cardholders. The top players in credit card segment are ICICI Bank, HDFC Bank, Citibank, SBI, HSBC and Standard Chartered Bank. In India credit card base has grown to 27 million from 17 million in 2006.