The State Bank of India (SBI) country’s largest bank soon will be rolling out a “Financial difficulty package” for its customers who were regular with their repayments however, have defaulted in the recent months owing to difficult financial circumstances.
“We are planning to roll out a package which would include enhancement of the loan tenure and a downward revision of interest rates,” said SBI Card CEO Diwakar Gupta.
At present the company is charging an interest between 3.1-3.35 per cent and the revised interest charged for the defaulters would be around 2.5 per cent. Expressing views about the rising delinquencies, Gupta said the company is performing at parity with the industry standards.
“We are neither better off nor worse compared to the industry standards. Our delinquencies are in line with the industry average of around 15 per cent,” he added.
In the meantime, SBI Cards & Payments Services has signed an agreement with Dena Bank to launch a co-branded credit card. State-run Dena Bank is having a credit card holder base of 10,000 of which 6,000 are active.
Executive Director Bhaskar Sen informed “Banking and credit card management are different and our core competence lies in banking, so we decided to partner with a professional organization for credit cards”.
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