RBL Bank and Bajaj Finance have ended their 8-year-old partnership to roll out co-branded credit cards with the private lender stating that synergies as worked out originally have undergone significant changes.

The bank and the consumer financier have mutually decided to stop issuance of co-branded credit cards under their partnership. 

This is in line with the bank’s plan to build a diverse range of partnerships, including with non-banking financial companies (NBFCs) such as Mahindra & Mahindra Finance, TVS Finance, as well as consumer brands like IOC and IRCTC. “Over the last 18 months, RBL Bank has significantly expanded its credit card issuance capabilities through both direct channels and new co-brand partnerships,” the lender said. 

With a base of 5.17million credit cards as of October 2024, RBL Bank does not feel the strategic need for such a partnership which kicked off in 2016. When scaling up, the lender used to acquire about 200,000 to 250,000 cards per month. But this has strategically reduced to 100,000 per month even as unsecured retail has faced a challenging environment.

RBL Bank said it has minimised its dependence on the origination of co-brand cards with Bajaj Finance over the last year, from 126,000 in September 2023 to 37,000 cards in September 2024.

There are around 3.4 million cards issued under the partnership, which RBL Bank will continue to service. "RBL Bank will continue to service the existing portfolio of approximately 3.4 million co-branded credit cards issued under this partnership while ensuring seamless support and customer satisfaction across all its service channels," the lender said.

According to the bank, cardholders of RBL-Bajaj Finance co-branded credit cards will continue to be customers of RBL Bank and can continue to use their cards on the same terms and conditions as at the time of issuance of such cards.

The lender has assured the cardholders that they will enjoy the same benefits, rewards, offers, etc., associated with their existing cards. However, upon renewal, these cards will be reissued as RBL Bank-branded credit cards.

“The bank remains focused on growing its credit card business as a prominent customer acquisition engine,” the bank said, adding that the RBL-Bajaj Finance co-brand has been one of the largest and most rewarding co-brand relationships in the country.