The Development Credit Bank, a private sector lender has launched its credit card business called 'DCB Advantage Card' on 4th March 2008. The Bank has tied up with ICICI Bank in order to extract the best skills out of it as well as to utilize its experience for a successful execution of the task. The credit card business launched by the Development Credit Bank is available to all its potential customers all across India. The credit card holders of DCB will enjoy a wide spectrum of benefits. The credit card market in India is a booming sector now and it is also expected to witness a remarkable rise in the recent future. Development Credit Bank currently comprises around 4.5 lakh card holders and around 50,000 customers are expected to join in soon.
Sachin Khandelwal, the head of cards product group of ICICI Bank, who looks after the credit card services of Development Credit bank has stated that majority of the already existent card holders have increased the credit limit of their cards which led to a substantial increase in the interest rate. This has resulted in the acquiring of installment payments of dues by the customers which charges an interest rate of only 20%. The Advantage Credit Card has not only worked as a value proposition for the credit card department of DCB but is also a key driver for the growth strategy of the bank.
The Advantage Credit Card offers a wide variety of benefits such as lifetime validity, fast addition of reward points, absolutely zero processing fees for the first three months, no charge for balance transfer, availability of EMI on phone calls and offerings of attractive and beneficiary schemes and promos periodically. The products and services offered by the bank in association with the ICICI bank have been designed in accordance with the taste and requirements of potential customers. The launching of Advantage Credit Card by Development Credit Bank is a huge hit and has also played the role of catalyst in speeding up the growth rate of Development Credit Bank in the market. DCB has set up almost 80 branch units and extension counters along with 18,000 ATMs spread across ten states and two Union territories in India.
The Bank gained Rs.459.3 million as net profit after tax for the nine month period of Financial Year 2007-08 as against Rs.77.8 million during the same time in the previous financial year. On 3rd march, 2008, the shares of the Development Credit Bank fell by 5.43%, to Rs.100.2, which is a drop of Rs.5.75. The total amount of shares sold on the same day at Bombay Stock Exchange was 235,894.
