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TFL sells credit card portfolio to ICICI Bank
March 28, 2003 20:37 IST
Tata Finance Ltd on Friday sold its credit card portfolio to ICICI Bank Ltd for an undisclosed amount making it the only bank with affiliation to three card issuing entities - Visa, Mastercard and American Express.
The Tata Group company, which had been negotiating the deal for the last two-three months, was a franchisee of
American Express cards and this arrangement would now be looked after by the bank, a TFL company official said.
TFL has about over 80,000 credit card holders, with 50,000 being active members, valued at Rs 35-40 crore (Rs 300-400 million) would now move to the private sector bank, he said.
With this deal, the company will completely exit from the cards business and concentrate on core business, which is financing two and four wheelers.
ICICI Bank executive director Chanda Kochhar said this deal would help to expand the credit card holder base and also add a third card issuer apart from Visa and Mastercard."It will take about two to three months to complete the entire process", she added.
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