BOBCARDS Ltd, the credit card subsidiary of Bank of Baroda (BoB), launched its premium BOBCARD Gold card yesterday. Chairman and managing director, Bank of Baroda (BoB), K Kanan said that with the launch The Gold card, BOBCARD would now offer travel related services to its cardholders. Kannan said that there is a likelihood that BOBCARD may even go public in order to raise fresh capital for the venture. "But no plans have been drawn up as yet," he added.
BOBCARD Gold, in affiliation with Visa International, has already received 3,000 applications. "We will in future look at travel related services. The card should give the holder all the facilities and comforts required while travelling," Kanan said. The card would permit the holder to meet his international travel requirements. This entails that the company will have to enter into alliances with travel agencies, hoteliers, and airlines. BOBCARD's turnover last year crossed the Rs 400 crore mark. Out of the 6.5 million credit cards market, BOBCARD already enjoys a market share of nearly 40 per cent, company officials said.
"The credit card market in India is slated for tremendous growth. While internationally 8.8 per cent of personal expenditure was through credit cards locally, this percentage was below one per cent, Kanan said. The GOLD card is the latest offering of BOBCARDS. Employed individuals with a salary exceeding Rs 2 lakh and self-employed professionals with incomes over Rs 1.5 lakh will be eligible. Whereas a corporate card holder will have to have a paid up capital of Rs 10 lakh. Other facilities offered include a zero interest period, revolving credit, emergency cash, personal insurance, baggage insurance, and subscription to a weekly magazine.