Kotak, PVR form alliance, to bring out co-branded cards
By Sadiya Upade
23 February 2011
Multiplex operator PVR on Tuesday announced a tie-up with Kotak Mahindra Bank, wherein the two will launch a co-branded card.
Kotak expects the credit card business to contribute around 25-30 per cent to its overall income in the next two years, from the current 15 per cent, as per reports.
K V S Manian, group head, consumer banking, Kotak Mahindra Bank Limited, said its research showed entertainment was one of the key area for spending through cards among consumers. Other focus areas for the Group include retail, for which it has a co-brand partnership with Bharti Retail, and dining.
Speaking about the tie-up, Manian said, ''We see the partnership as a mutually beneficial one as we are both looking at a similar set of consumers.''
About 12-14 per cent of PVR customers use credit cards for payments. The entertainment company plans to increase this number to 30 per cent in the next two years.
Pramod Arora, group president and CEO, PVR, said that tie-up will help the multiplex chain build a loyalty base and engage consumers better by gaining significant consumer insight through the partnership.