Indian Overseas Bank Ltd. has entered into a distribution agreement with American Express Co., a spokesperson for the Chennai-based bank tells PaymentsSource.
Under a memorandum of understanding signed by the two entities, Indian Overseas will distribute cobranded AmEx Platinum and Gold credit cards to its premium and high-net-worth customers. The cards would be available for qualified customers beginning May 1, the spokesperson says.
Indian Overseas also issues 37,000 Visa-branded Gold and Classic credit cards. “Less than half of these have been issued to high-net-worth customers,” the spokesperson says. “Our target is to issue American Express cards to at least 500,000 of our high-net-worth customers by the end of 2011.”
The Platinum card will come with a one-time initial fee of 50,000 rupees (US$1,110 or 792 euros) and an annual fee of 10,000 rupees. The Gold card will be available for free the first year to customers, who thereafter would pay 4,300 rupees annually.
Indian Overseas is a government-owned bank established in 1937 and has branches both in India and abroad.
