"The card is positioned directly against American Express and we believe it is a better product," the bank''s Managing Director Aditya Puri told reporters after launching the card, pointing to the entrenched competitor serving the high-net category.
To start with, the bank will issue 5,000 of the credit cards, which come with a slew of privileges through partnerships to its wealth management customers on the basis of their networth and financial dealings history.
The bank management, however, declined to give details like the networth cut-off which will make a customer eligible.
The card''s annual fee will be Rs 30,000, while the bank will charge an interest of 1.99 per cent per month and levy a 2 per cent foreign currency fee.
"We have the largest network of merchant terminals across the country acquired by ourselves. The unique difference from others serving the segment is that Infinia will get accepted anywhere," the bank''s country head for retail assets and credit cards, Pralay Mondal, said.
A senior bank official said American Express has around 1.5 lakh cardholders in India.
Puri said HDFC Bank will not offer concierge services to its cardholders, something which American Express is famous for. Instead, it will give facilities like an air accident cover of Rs 3 crore, emergency hospitalisation cover of Rs 50 lakh, loyalty rewards and has also tied-up with Taj Hotels and Singapore Airlines, he said.
The ultra rich may comprise 1 per cent of the card holding population but they spend 10 per cent which is a big opportunity, its Executive Vice-President Parag Rao said.
The number of ultra rich in the country stands at 62,000 presently, which is expected to grow to 2,19,000 by 2016, he said, adding that 22 per cent of the wealth for this category of customers goes into consumption.
HDFC Bank has a credit card base of 53 lakh, issues 80,000 cards a month and holds a 26 per cent market share going by spends.
Puri said it has a net non-performing assets ratio of around 8-10 per cent from the credit cards vertical as compared to the industry average of around 15 per cent.
