Country’s largest public sector lender, State Bank of India (SBI) has launched multi-function smart cards in association with a Pune based City Corporation Limited. A data centre has been set up for the technical support of the society called Amanora. Around Rs 70 crore has been invested for the setting of data centre.
City Corporation said, Amanora is India’s first digital city and the first fully integrated township has been set up with multiple technologies brought together to facilitate hassle free living for its members.
The card has a combination of microchip, magnetic strip and RFID antenna.
Aniruddha Deshpande, managing director, City Corporation Limited explained, "With our development effort of over three years along with leading technology partners, we are happy to have reached this stage of developing the first such dedicated and integrated application for residential purposes."
The card can be used as an access card similarly to debit card. The card owners can use card to access township, residence, parking lot and different sectors within the township. It can also be used for payment of cable television bills, club expenses, shopping at Amanora Town Centre, among others. This card will have added feature of health records of the Amanora Citizens in case of an emergency.
City Corporation will also collaborate with SBI for providing financial solutions. The card can be used as pre-paid card for paying electricity bill and cooking gas.
Tuesday, November 9, 2010
Tuesday, November 2, 2010
SBI to widen its credit card biz
State Bank of India is increasing its credit card business. It had earlier shrunk its card base by 16%. The bank will be focusing more on the upper middle class segment this time and has thus decided to come up with Platinum cards.
SBI Cards is a joint venture of 60:40 between SBI and GE Capital has registered a profit in the quarter ended September 2010, though it had expected to attain profit by March 2011.
During the recession period most of the banks pulled back from credit card due to huge losses, even SBI Cards pulled back but it is the fastest one to rebound to the growth mode. State Bank of India chairman OP Bhatt said, “The whole industry had seen a 33% drop in the number of cards from 27-28 million to 18 million. Against this, the number for SBI Cards has come down from 3.1 million at its peak level in 2008 to around 2.6 million now.” As bank has recovered it plans to issue at least 40,000 cards every month.
But bank will not sell the cards through marketing agents at petrol pumps it will sell cards largely to customers at bank branches.
The bank plans to increase its customer’s base in the high net worth segment, as it is high-spending and less prone to defaults. Bank plans to increase the high net worth segment from 5% to over 50%. To achieve this target it is offering a host of benefits with a Platinum Card. The benefits include 10 cash points for every 100 spent and up to three Kingfisher Airline return air tickets every year.
SBI Cards CEO Abhay Kumar Singh, points out, the company has learned a lesson from the industry’s excesses of 2007-08. He said, “There is no mad rush for land grab or market share,” and added, the wise decision on issuing cards has helped in bringing down loan losses to single-digit levels.
GE Capital president and CEO Anish Shah said, “Acquiring customers through SBI branches helps us know the customer far more than we can otherwise. That gives SBI Cards a better understanding of the customer preferences as well as helps us plan the product mix and customer value proposition.”
Mr Bhatt said most probably the central bank will maintain status quo or at best raise rates by 25 basis points in its half-yearly review of its monetary policy. He added, however the central bank has tough choice as even without RBI action, there is tightness in the money markets, but at the same time, inflation has not come down to comfortable levels.
Mr Bhatt said SBI year-on-year growth in credit was around 18% and increasing advances to achieve 20% plus levels which would be tough. Although there is shortfall in liquidity in money markets, the SBI chairman said the bank is in comfortable position. He said, “There was a time when there was a shortage of liquidity. From there, we moved to a position when there was a liquidity overhang. Today, we are in a position where we are just right in terms of liquidity.”
He informed that the reviewing of lending rates will depend on how its cost of funds moves.
SBI Cards is a joint venture of 60:40 between SBI and GE Capital has registered a profit in the quarter ended September 2010, though it had expected to attain profit by March 2011.
During the recession period most of the banks pulled back from credit card due to huge losses, even SBI Cards pulled back but it is the fastest one to rebound to the growth mode. State Bank of India chairman OP Bhatt said, “The whole industry had seen a 33% drop in the number of cards from 27-28 million to 18 million. Against this, the number for SBI Cards has come down from 3.1 million at its peak level in 2008 to around 2.6 million now.” As bank has recovered it plans to issue at least 40,000 cards every month.
But bank will not sell the cards through marketing agents at petrol pumps it will sell cards largely to customers at bank branches.
The bank plans to increase its customer’s base in the high net worth segment, as it is high-spending and less prone to defaults. Bank plans to increase the high net worth segment from 5% to over 50%. To achieve this target it is offering a host of benefits with a Platinum Card. The benefits include 10 cash points for every 100 spent and up to three Kingfisher Airline return air tickets every year.
SBI Cards CEO Abhay Kumar Singh, points out, the company has learned a lesson from the industry’s excesses of 2007-08. He said, “There is no mad rush for land grab or market share,” and added, the wise decision on issuing cards has helped in bringing down loan losses to single-digit levels.
GE Capital president and CEO Anish Shah said, “Acquiring customers through SBI branches helps us know the customer far more than we can otherwise. That gives SBI Cards a better understanding of the customer preferences as well as helps us plan the product mix and customer value proposition.”
Mr Bhatt said most probably the central bank will maintain status quo or at best raise rates by 25 basis points in its half-yearly review of its monetary policy. He added, however the central bank has tough choice as even without RBI action, there is tightness in the money markets, but at the same time, inflation has not come down to comfortable levels.
Mr Bhatt said SBI year-on-year growth in credit was around 18% and increasing advances to achieve 20% plus levels which would be tough. Although there is shortfall in liquidity in money markets, the SBI chairman said the bank is in comfortable position. He said, “There was a time when there was a shortage of liquidity. From there, we moved to a position when there was a liquidity overhang. Today, we are in a position where we are just right in terms of liquidity.”
He informed that the reviewing of lending rates will depend on how its cost of funds moves.
Monday, November 1, 2010
Indian Americans in US get gift card from American Express on Diwali
American Express is offering a gift card with an exclusive Diwali theme for the first time this year to Indians based in US.
Alpesh Chokshi, president, global prepaid business said, "We're absolutely delighted as a company to launch the Diwali card for Indian American this year," and added, this is the first time the company is offering a product addressing to the needs of the Indian community in the US.
Chokshi informed, "The Asian Network at American Express brought the idea to our team. In fact, they designed the card as well" a contest was also conducted for this.
Unlike other gift cards, on American Express gift cards there are no fees after purchase – for activation, for checking balance, monthly servicing or card replacement.
Moreover there is no limit on usage of card, and if the card gets stolen or lost, funds can be replaced. They can be used at any place that accepts American Express cards.
The card is accepted at millions of locations in the United States, Puerto Rico and the US Virgin Islands where American Express Cards are accepted.
Chokshi said, "You can be confident during Diwali that you are giving 100 percent gift and zero percent fees."
Chokshi was born in India but moved to the US with his parents in the late sixties. He says, now things have changed considerably, earlier it was difficult to find an Indian restaurant or grocery store anywhere. Now, you can find them easily.
Chokshi said, "When there's very little of your culture it's very hard to succeed, to survive, to integrate with the community. I've seen it all first hand but now, as we've seen the Indian community grow in America and expand over time, to me it's a signature day for the community when a Diwali gift is being introduced."
Bank has launched Diwali Gift Card in denominations of $25, $50, $100 and $200 and can be obtained online (at www.americanexpress.com/diwali) for a limited time. Moreover, customers will get free standard shipping offer from American Express when they enter the promo code “Diwali".
Alpesh Chokshi, president, global prepaid business said, "We're absolutely delighted as a company to launch the Diwali card for Indian American this year," and added, this is the first time the company is offering a product addressing to the needs of the Indian community in the US.
Chokshi informed, "The Asian Network at American Express brought the idea to our team. In fact, they designed the card as well" a contest was also conducted for this.
Unlike other gift cards, on American Express gift cards there are no fees after purchase – for activation, for checking balance, monthly servicing or card replacement.
Moreover there is no limit on usage of card, and if the card gets stolen or lost, funds can be replaced. They can be used at any place that accepts American Express cards.
The card is accepted at millions of locations in the United States, Puerto Rico and the US Virgin Islands where American Express Cards are accepted.
Chokshi said, "You can be confident during Diwali that you are giving 100 percent gift and zero percent fees."
Chokshi was born in India but moved to the US with his parents in the late sixties. He says, now things have changed considerably, earlier it was difficult to find an Indian restaurant or grocery store anywhere. Now, you can find them easily.
Chokshi said, "When there's very little of your culture it's very hard to succeed, to survive, to integrate with the community. I've seen it all first hand but now, as we've seen the Indian community grow in America and expand over time, to me it's a signature day for the community when a Diwali gift is being introduced."
Bank has launched Diwali Gift Card in denominations of $25, $50, $100 and $200 and can be obtained online (at www.americanexpress.com/diwali) for a limited time. Moreover, customers will get free standard shipping offer from American Express when they enter the promo code “Diwali".
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