RBL Bank, Bajaj Finance to discontinue co-branded credit card issuance; here is what this means for investors and cardholders

Mon Dec 02 07:38:44 UTC 2024: **RBL Bank and Bajaj Finance End Co-branded Credit Card Partnership**

**Mumbai, India (December 2, 2024)** – RBL Bank and Bajaj Finance have announced the termination of their co-branded credit card issuance program. While existing 3.4 million co-branded cards will continue to function under the same terms and conditions, no new cards will be issued jointly. Upon expiry, existing cardholders will receive new cards solely under the RBL Bank brand.

The partnership, a significant driver of RBL Bank’s credit card business, accounted for 41% of its total credit card portfolio in Q2FY25, down from 63% in Q2FY24. RBL Bank’s overall credit card business remains robust, however, with a 12% year-on-year increase in cards in force (reaching 5.12 million) and a 15% jump in spending to ₹7,332 crore.

RBL Bank shares fell 2.6% following the announcement, while Bajaj Finance saw a marginal dip. The bank plans to offset the impact of the partnership’s end by diversifying its co-branded offerings with new partners including Mahindra & Mahindra Finance, TVS Finance, IOC, and IRCTC. The gradual phasing out of the Bajaj Finance co-branded cards began 18 months ago, with issuance numbers decreasing significantly. The decision is expected to have a greater impact on RBL Bank than on Bajaj Finance.