Mahindra Finance and RBL Bank Unite for Co-Branded Credit Card Launch

Mahindra Finance and RBL Bank are set to launch a co-branded credit card after receiving approval from the Reserve Bank of India. This partnership aims to meet consumer needs and leverage growth potential, amidst concerns over credit card portfolios and regulatory measures affecting such financial products.

Non-bank lender Mahindra Finance is partnering with RBL Bank to introduce a new co-branded credit card, having received the necessary approval from the Reserve Bank of India. According to Mahindra Finance's Managing Director, Raul Rebello, the initiative aims to address the aspirational needs of its customers.

This strategic move comes at a time when there is increased scrutiny over credit card portfolios, alongside efforts by regulators to mitigate risks associated with these financial instruments. The Mahindra group holds a strategic 3.53 percent stake in RBL Bank, having invested Rs 417 crore. Meanwhile, RBL Bank is looking to reduce its dependency on Bajaj Finance for distributing credit cards.

This maiden venture for Mahindra Finance opens new synergies between the two firms. RBL Bank's executive director, Rajeev Ahuja, highlighted the objective of providing a comprehensive solution with unparalleled benefits across various categories. The partnership aims to capitalize on growth opportunities, particularly with e-commerce expansion and technological advances impacting even non-metro areas.

(With inputs from agencies.)