Project On Customer Perception towards Credits Cards

Submitted to Bangalore University in partial fulfillment of requirements for the award of degree of Master of Business Administration By PIYUSH SINGH Reg. NO:- 10YUCMA055 Under the guidance of Prof. Nila Chotai

acharyaNURTURING THE FUTURE

Acharyas Bangalore B-School Lingadheeranahalli, Magadi Main Road, Bangalore - 560 091 2010-2012

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CERTIFICATE OF ORIGINALITYThis is to certify that the project titled Customer perception towards credit cards is an original work of the student and is being submitted in partial fulfillment for the award of the Masters Degree in Business Administration of Bangalore University. The report has not been submitted earlier to this University/ Institution for the fulfillment of the requirement of a course of study.

SIGNATURE OF SUPERVISOR PLACE: ___________________ DATE: ____________________

SIGNATURE OF STUDENT PLACE: _______________ DATE: ________________

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DECLARATION BY STUDENT

I, PIYUSH

SINGH, hereby declare that the content of this

internship project titled Consumer Perception Towards Credit Cards. In a Banking industry. Further, this report has not been submitted to any Institution or University for award of any degree.

Place Date: (Piyush Singh)

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ACKNOWLEDGEMENTI am extremely grateful to all those who have shared their views, opinions, ideas and experiences which have significantly improved my research work embodied in this dissertation. I like to express my sincere thanks to Mr.Ujwal.K, Branch Manager, without which this dissertation would not have seen the light. I would like to thank Prof Nila Chotai (my project guide) and Dr. VENKATESHA (DIRECTOR) for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Bangalore.

(Piyush Singh)

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CONTENTS PAGE PARTICULARS List of Tables List of Figures Abstract INTRODUCTION About the broad area of topic chosen About the specific area of topic chosen NO. 6 7 8

CHAPTER NO.

1

10 11-12 13

About the topic REVIEW OF LITERATURE & DESIGN OF THE STUDY 2 3 Introduction Review of literature Statement of the problem Scope of the study Objectives of the problem Methodology

15-17 17 17 17 18-19 19

Limitations of the study PROFILE OF THE CREDIT CARD INDUSTRY Industry overview

21-27 28-34 5|Page

Profile of the IndusInd Bank Product profile 35-63

4

RESULTS, ANALYSIS & DISCUSSIONS SUMMARY OF FINDINGS, CONCLUSIONS & SUGGESTIONS

64-74

5

Summary of findings Conclusions Suggestions

75-78

BIBLIOGRAPHY ANNEXURE

79-80 81-83

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LIST OF TABLES Table No. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 Description Platinum Aura shop plan value chart Platinum Aura home plan value chart Platinum Aura travel plan value chart Platinum Aura party plan value chart Airways value table Travel insurance cover plan table Platinum Aura value offering table Platinum Aura value table Platinum Select international travel insurance benefits table Platinum international travel insurance benefits table Platinum value table of airways Signature reward point table Signature value offering table Signature travel insurance cover detail table Page No. 36 37 38 39 41 42 42 & 44 45 48 55 55-56 57 59,61,62 &63 63

List of Graphs/Figures Table No. 4.1 4.2 4.3 4.4 4.5 Description Gender of credit card user? Age group of the credit card user? Annual Income of credit card user? Which area they belong? Occupation of credit card user? Page No. 65 66 67 68 69 7|Page

4.6 4.7 4.8 4.9 4.10

Which bank credit card you use? How long have been you are using credit card? Why did you selected this bank? Are you satisfied with the services provided by your bank? Are you satisfied with the bank?

70 71 72 73 74

ABSTRACTThe main objective of my doing project in Banking Industry was only because of a broad scope and continuous growth of sector. The methodology used in this project are primary data (survey) and secondary data (journals, magazines & annual reports). The most relevant method of data collection was Primary data and sample size was 100. The Descriptive research method was used to obtain the relevant result and it is applicable only to Bangalore. Based on analysis few findings, conclusion with suggestions have been obtained and they are: Very few customers prefer using credit card in todays world Mostly people using their services more than 2 years. Many bank users prefers credit card. Many people faces problem in interest rate. According to service IndusInd found better. According to value added services we found Citi Bank better than IndusInd Bank because some customer change IndusInd to Citi. Mostly people are satisfied with their Credit limit. Mostly people want free credit cards from their bank. If people given a choice to opt any other they prefer IndusInd Bank Mostly people are satisfied their customer care service provider.

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By working in such a successful organization,I have come to know lot about this organizations functioning and its markets exacting quality control absolute commitment and integrity and most significantly a sense of dynamism of striving for the extraordinary and lots more to offer it one of the most professional in its nature. It should try to analyse its 4th position & try to move up in ranking. Credit Cards should be available on date. There should be more number of Branches & ATM.

Chapter 1 INTRODUCTION

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1.1 ABOUT THE BROAD AREA OF THE TOPIC CHOSENWith 96 percent of U.S. families owning bank credit cards, another 60-plus percent holding store credit cards, and debit and prepaid instruments floating about, there's no doubt that the credit card services sector is one of the economy's top drivers. The main player, Visa USA, accounts for about 59 percent of the market in terms of number of cards, and 55 percent in regards to transaction dollars, which is $3.8 trillion (2007) in Visa's case. (The company's market dominance is even a bit higher for Visa Europe.) Its next closest competitor, MasterCard Worldwide, commands approximately 34 percent of the field in both categories, and American Express controls only 9 percent of the credit card landscape, dollar-wise. Discover is smaller still, and JCB, Diners Club and store credit service providers define just a tiny micro-economic environment. A financial background is appreciated for those entering the industry, but likely not mandatory -- a significant percentage of credit card services employees work in customer service, global processing, admin or business support areas. Many of these workers are selected from college recruitment 10 | P a g e

trips or otherwise arrive straight from university. Systems and technology workers are also in demand, and a limited number of strategy, marketing and product development experts steer a company toward success. The Bureau of Labor Statistics expected the number of positions for customer service reps to grow by about 25 percent between 2006 and 2016, and the number of computer systems designers and similar related workers (some of whom work on credit card system security and operability) will jump by 38 percent by 2016. But the industrys health depends largely on how much consumers are able to spend, and due to the recent economic downturn, everyone's struggled. Nonetheless, both Visa and MasterCard showed gains in revenue and income for the last quarter of 2008, and neither has announced large-scale layoffs for 2009.

1.2 ABOUT THE SPECIFIC AREA OF THE TOPIC CHOSENChina and India are the two most populous countries, with 1.34 and 1.18 billion people, respectively. Although the populations are similar in size, last year the Chinese spent nearly $24 billion on credit cards, which is 12 times more than the $2 billion spent in India. However this difference is rather insignificant at such an early stage, since both figures still only represent a trivial fraction of each countrys economy. In order to gauge where India is heading we must consider the following factors:

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Past Growth Rate: According to the Indian research firm RNCOS, the country saw a CAGR of around 40% between FY 2006 and FY 2009 for credit cards. Short Term Future Growth: The aforementioned firm predicts a CAGR of 20% between FY 2011 and FY 2013. According to their press release the payment card market is highly untapped and is still at its nascent stage due to a very low level of penetration in terms of payment card usage. Long Term Future Growth: The biggest obstacle facing long term growth will be infrastructure. According to the RBI, approximately 40% of citizens still do not have a bank account. Increased adaption of banking will be a key component in how quickly card usage is adapted. Furthermore, businesses will need to have greater ability and the willingness to incorporate debit/credit card processing. Lastly and most importantly society must also be willing to adapt the transition from paper to plastic. Government Participation: One factor we can be relatively confident in is that the government has and will continue to be supportive of the card industry. The RBI has proposed launching domestic payment card and a POS network for card payments. How I believe credit cards will be different from those in the United States Nowadays, just about every credit card in the U.S. offers cash back, points, or some other form of rewards on purchases but it wasnt always that way. During the 60s, 70s, and 80s, rewards were almost non-existent and most credit cards even charged an annual fee. It wasnt until the American market started approaching full saturation that we saw cash back credit cards, travel rewards credit cards, and other gimmicks offered by banks to try and stand out from the competition. In summary, these extra perks would probably not be offered if the market wasnt so competitive. For that reason, I do not believe we will see Indian credit cards offering widespread 12 | P a g e

rewards for many years (the market first must become much more saturated). There is also the possibility that we may never see such lucrative credit card rewards programs in India. Why? Because there are only two reasons its possible for banks to give 1% to 5% cash back on American credit cards: (1) Credit card companies charge merchants processing fees, which average 2% and higher. These fees help cover the costs of the rewards. Many countries crack down on these fees and limit the amount merchants can be charged. For example, the Royal Bank of Australia capped these fees at only 0.5% in 2003. If India were to also drastically cut the fees, rewards would be far less likely. (2) In the United States, the savings rate is very low. Since the recession it is historically high at 6%, but usually it is even less than that. Compare this to a country like India, where the savings rate is around 30%. Because Americans have so little money saved, many do not pay their credit account in full each month or they use credit cards for balance transfers both of these forms of borrowing involve paying interest payments and/or transfer fees. That, in turn, also helps to offset the banks expense of offering rewards. However in a country like India where savings is high, I expect the population will generally be less likely to use this expensive type of borrowing. Therefore, it may not be profitable for banks to offer cash back credit cards and the like.

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1.3 ABOUT THE TOPICThe demand for credit cards is growing over time. The total number of credit cards in the system is at around the 25 million mark. This number was on 31st march 2009 stood at around 11 million while debit cards were at more than 20 million The distribution has increased with local banks becoming more aggressive. However, duplication of users is a concern for the industry which can exaggerate the number of active users. Since the business is largely concentrated in the metro cities, the average user holds 2 to 3 cards. This research has been carried out to understand the card industry that includes the types of providers, types of cards, features of cards, acceptability of the card among the Indian consumer. It also involves finding consumer's perception towards different providers. Questionnaire has been used. People from different age groups, occupation and income level were selected for the study. A comparison of various card providers has been made through graphical representation on a list of parameters, like credit period, credit limit, penalty charges, provided, security of money, cost involved and number of ATM's. The inferences were drawn for two banks ICICI Bank and State Bank of India. The above research concluded that that public bank like SBI scores on factors like low cost, penalty charges and long credit periods but a bank like ICICI is being considered as costly, but definitely provides better and efficient service in terms of additional features and benefits.

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CHAPTER- 2

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REVIEW OF LITERATURE & RESEARCH DESIGN

2.1 REVIEW OF LITERATURE EBSCO

WILL THE CREDIT CARD MARKET BE REVIVED IN THE NEAR FUTURE?* The CARD Act of 2009: introduced some useful regulatory reforms, to reduce or eliminate some of the worst credit card practices (Choo, 2010). However, demonstrates preventing does not coming crisis abuses. It prevent card 16 | P a g e long after the abusive banking industry practices began, the act management, rather than proactive public sector leadership in The CARD Act reduces but does not eliminate most abuses.

issuers from dramatically raising interest rates, substantially reducing payments. banks new constraints. * Recent financial reform legislation: regulators and new In the name of financial plenty of regulatory credit In time lines, or doubling minimum monthly addition, to cancelling rewards programs,

passage of the law a year before it took full-effect, gave the make any prohibited changes prior to the implementation of the

protecting consumers and financial

reducing systemic risk, new government

regulations are likely to further depress market supply in the credit card market. Definition: A bank-issued card that allows people to purchase goods or services from a merchant on credit When you accept credit cards, you make it easy for your customers to buy from you because you're offering convenience and the chance for the customer to buy on "float." Yet the money isn't coming out of your pocket-quite. A kitchenware store in Atlanta might take a Visa card purchase from a customer who lives in Milwaukee and has a credit card that was issued by a bank in that city. The sales slip is deposited along with the other receipts in the store's bank account. The Atlanta bank credits the amount of the sale less a handling fee, generally 4 to 7 percent. Assuming the sale was $20 and the handling fee is 5 percent, the Atlanta storeowner actually receives only $19. The loss of the one dollar is built into the store's pricing and profit structure and passed along to the customer. Then the Atlanta bank transfers the debt to the customer's Milwaukee bank, which stands behind the debt and transfers the necessary funds to the 17 | P a g e

Atlanta bank. The Milwaukee bank then bills the customer for the $20, plus interest if payment isn't received by a certain date. The bottom line is that the storeowner in Atlanta offered credit without much risk, the Milwaukee customer received the merchandise, and the banks in both cities made money. Since the credit card companies are shouldering the risks in granting credit, they expect merchants to help them cut their losses. Both Visa and MasterCard publish regular lists of card numbers that are unacceptable for some reason, and they send them out to merchants and expect you to look at this list before granting credit. American Express, Discover and Diner's Club are also credit cards you may decide to accept. They differ considerably from bankcards because their credit requirements are generally higher. Most bankcards grant credit if a person has a job, a permanent residence, and no questionable information in a computer credit file. These so-called "entertainment cards" generally have a higher credit ceiling. Bankcards will put a credit line to a customer's account and hold the person to that limit. Entertainment cards are geared to the more affluent consumer with lots of discretionary dollars to spend. The final difference is that entertainment card companies expect to be paid in full each month, while the bank cards give the customer two options: Pay the balance in full or pay a minimum of 3 percent of the total balance plus interest monthly. With high rates of interest, banks profit handsomely if cardholders don't pay off their entire credit card bill at once. If you haven't already been approached by one of the major credit card representatives, approach them. Their sales associates work on commission and are happy to pitch the advantages of the various programs. Offering a credit card program eliminates the time you waste handling credit sales. When you consider that certain costs of credit are fixed

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(posting accounts, billing and so on) and will cost you the same for a $10 sale as for a $500 sale, this argument also makes sense. A marketing benefit that helps your advertising sales is the automatic mailing list the credit-card sales slip provides you with. You can (if you ask customers to fill in their name and address) have a day-by-day record of that customer's purchases and use your mailing list to promote future sales by mail. Another benefit the sales personnel will tout is the security of credit card sales. You will (if you follow the credit card company's guidelines) be able to collect your money even if the cardholder skips town. The credit card operation assumes the risk and pursues collection, which helps you spend your time more profitably running your business. 2.2 Statement of the Problem This particular topic is selected because Consumer Perception is a very important element necessary for the smooth functioning of an organization Consumer surveys provide a channel for employees to communicate their views on a wide range of issues in total confidence .They help management to build up an accurate picture of how consumers perceive the organization and highlight the causes of consumers dissatisfaction. 2.3 Scope of the study The survey was conducted on Operative Level of IndusInd Bank. The questionnaire for this survey was framed considering those factors where corrective action can be taken. From the result of the survey the Marketing department can take the corrective action to increase customer satisfaction and thereby increase productivity. 2.4 Objective of the Study The following are the objectives and purpose of the study-

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The main emphasis is on the consumer perception about the credit cards. To ascertain the Consumer Perception about the credit cards with respect to price, product and advertising. To find the Uses of credit cards with the special reference in Bangalore. To study the perception of people for credit cards in Bangalore. To determine the target market for credit cards. To identify the ways to increase the market share of IndusInd Bank.

2.5 Purpose of the Study The study has been conducted for gaining practical knowledge about Marketing practices and fulfillment of MBA (BU).

2.6 Research Methodology RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis data in a manner to combine relevance to the researcher purpose with economy in procedure The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire knowledge. SOURCE OF DATA Data are the raw materials in which marketing research works. The task of data collection begins after research problem has been identified 20 | P a g e

and research design is chalked out. Data collected are classified into primary and secondary data. Primary data

In this study, the primary data is collected in form of questionnaire and through interviews with the Consumer. Secondary data

Secondary data were collected from the companys website, annual publications, memorandums of settlements, newspapers, and journals and from books. 2.7 SAMPLING METHODOLOGY Research work was conducted by taking a sample of 100 consumers. The sample was randomly selected from each Customer. To study the perception of consumer, questionnaire was prepared and survey.

2.8

DESCRIPTION OF STATISTICAL TOOLS USED

Percentage Analysis In this project Percentage Analysis method test was used. The percentage method is used to know the accurate percentages of the data we got, it is easy to graph out through the percentages. 2.9 LIMITATION OF THE STUDY As I was asked to carry on my vocational training I found the following limitations during my training period. So I could not collect all information regarding my topic. 21 | P a g e

Shortage of time factor was one of the biggest constraints. Study is confined to INDUSIND Bank only. Most stress was given on the primary data as it was difficult to collect secondary data from the organization and distribution since it is difficult to ascertain the authenticity of their statements.

All the observation and recommendation was made on the feedback obtained from survey. There can be some biasness in the information provided by the Banks.

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CHAPTER-3 INDUSTRY AND COMPANY PROFILE

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3.1 INDUSTRIAL PROFILE Credit Card Industry: A Background The new era of plastic currency seems to be here to stay with the rapidly growing mobile middle class. In India, people are being drawn to this new plastic money culture. A credit card has blessed & facilitated the middle class with the power to chase and often purchase their dreams, which are generally beyond their means. Plastic money refers to the substitution of the currency at the time when the transaction of buy & sell is taking place, by usage of a card, normally made of hard plastic representing such substitution. One of the main reasons for this kind of substitution is the postponement of payment i.e. currency. A credit card can be viewed as a payment tool which enables the card holder to purchase goods or services without parting with immediate cash & make one-time payment at the end of a specified period (known as the billing cycle, which is usually a month) with a provision for spreading this payment over several easy installments. In this way, it enables the cardholder to postpone their payment by usage of card availing credit from the issuer of the card, say a Bank or Non-Banking Finance Companies (NBFC). Thus, credit card is essentially a Pay Later Mechanism. Thus, the credit card system serves two objectives. The first one is to facilitate credit purchases and offering the privilege of paying later, and the second is to avoid the necessity of carrying currency with its inherent risk and inconvenience by providing the cards which are very easy to hold and carry. Growth in India: In India, the credit card culture was formally introduced almost 25 years ago. Since 1982, the Indian credit card market witnessed a rapid growth with an increasing number of banks offering credit card facility. The wave of credit cards entry set the banking industry a vital sector of a society into a new motion with ample scope of getting new accounts and more deposits 24 | P a g e

from other clients. Further development took place as more establishments were willing to accept them in place of cash, and more consumers found the concept to be a convenient mode of making payments with no need to carry cash. In India, the credit card business boomed in the 1990s.The number of credit cards in circulation has increased from 76 lakh in 2003, to over 1.55 crore by March 31, 2005. The total expenditure through credit cards went up to Rs 20,555 crore during 2004-05. The no. of credit card holders is increasing day by day. State Bank of India (SBI) Cards & Payment Services Ltd., the only non-banking finance company (NBFC) issuing credit cards in India, now has 3 million cardholders to its credit. While the credit card industry is growing at 35% in India, SBI Cards is growing at 70% annually. Recently, it overtook Citibank and became the second largest credit card issuer, led by ICICI Bank that has over 5million cards in the market. SBI Cards, a joint venture between SBI and GE Money, has nearly $100million under its portfolio per month. The company offers other benefits such as city-affinity on its cards for use in the metros. The credit card market in India, according to American Express, is growing at 20-25 per cent per annum. From half-a-million cardholders in 1992, the population is at a whopping nine million today. Also, the total billings on cards are estimated at over Rs 10,000 crore, growing at 20 per cent per annum. According to the HSBC Credit Card Launch Case study done by Katy Merchant, The credit card market in India is about 3 million with a value turnover of around Rs.2500 crore. The market is expected to grow by 30% p.a. This would still be a very low penetration of a potential market of 60 million cardholders. The credit card business is a low-margin, high volume business. Thus, given the low income per card and the high initial investments by the bank, large volumes in terms of cards issued and the transactions financed are required to make the operations profitable. According to Visa Internationals latest data, average Indian cardholder uses his card 9.3 times, spending about Rs.14, 700 per year. A number of card 25 | P a g e

owners do not use their cards and almost 20 30 % cards are inactive (less than one usage every quarter). With the rapidly increasing consumer needs, the credit card industry has a lot of potential. Banks from the public sector as well as private sector are coming forward & are competing with the well established foreign players in this industry. In a country of 11million card holders, where plastic money constitutes only 1% of the total personal consumption, there is surely more to come. Along this line only, the issuers of credit cards have begun to offer much more than just credit to their customers like music system, executive diaries, subscription to business magazines & journals, etc. Customers are getting additional benefits with the use of affinity credit cards. Affinity Cards are issued by the sponsor banks especially for a particular section of people who take pride in the vocation or alma mater making them periodically donate some amount to improve the cause they love. Some of the banks are: American Express Nectar - earn extra Nectar points Virgin Credit Card - spend reward points on goodies in the Members Shop Breakthrough Breast Cancer - a very worthy charity's affinity credit card Manchester Utd FC - using this affinity credit card could win you an exclusive prize Examining the credit card as an augmented product reveals that it does not provide just the facility of revolving credit but it enables the consumer to enjoy supplementary services in the form of additional benefits like the facility of add-on cards, free accident insurance coverage for self as well as for spouse, and others. The flexibility to pay a small amount every month at every purchase and pay the balance later with some interest added has given the cardholder the freedom to spend and not worry about money. To cope with the increasing competition & to survive in the credit card industry, many Indian banks have started offering additional facilities to 26 | P a g e

their credit card holders such as free personal accident insurance, cash withdrawal facility, temporary increase in credit lines, add-on facility for dependents who are majors, leveraged investment facility, etc. The additional features being offered is changing the credit card in to a new avatar, called the convenient card. The Indian credit card market is not even yet near saturation. There is still more to come in credit card market. Credit Card Industry in Asia: A Comparison Plastic society is spreading rapidly not only in India but in other Asian countries also. In South East Asia, over the last two decades, the increase in the use of credit cards as a transactional medium is a notable change in consumer financial services. Credit card as a payment instrument device has become an attractive & propitious proposition to consumers. They now serve as a payment instrument in lieu of cash for many routine purchases, widely used and accepted, offer a revolving credit line without the need for collateral & also provides convenient access to other banking services. Touching on its credit card circulation, Bank Islam is expecting the number of its credit card holders to increase to 450,000 by June next year from 250,000 currently. (According to MD, Zukri, 17 May, 2007).The bank currently holds 1.5 percent market share of the credit card market. Consumers in emerging markets have discovered the credit card - with a vengeance. In China, where credit cards were unknown not long ago, plastic transactions have hit a staggering US$200 billion per year. In terms of number of transactions, the Chinese market is only fourth-largest, while Brazil and South Korea record much higher card usage. However, examining the value of transactions as opposed to the number of transactions, China is undoubtedly the largest, with more than $200 billion, while Brazil comes third, with $74 billion spent on credit cards. According to a report China, Brazil, Chile, India and Thailand as set to become the hottest markets for card issuance. Malaysia, China and India have 27 | P a g e

witnessed

the

most

interesting

recent

developments

as

regards

infrastructure. To increase the subscriber base, recently, Citibank & Air Asia tied the knot in Malaysia & launched their co-branded Citibank Air Asia credit card which enables the customer to earn free flights through a rewards programme when they shop at over 25 million outlets worldwide. With every Ringgit (Malaysian currency) spent with their Citibank Air Asia credit card for any purchase, cardholders will earn an Air Asia point. They will also be able to enjoy special privileges such as access to low fare seats during sales exclusive to Citibank Air Asia cardholders as well as minimum 24 hours priority booking ahead of the general public. With adequate risk management & regulatory controls credit cards business can be profitable. Unlike corporate loans where margins can be razor thin and a single big bad loan can cripple the unfortunate lender, banks are able to charge 18% per annum on credit card debt, way above the rates they charge for other types of consumer lending. High fixed overhead expenses imply that card issuers need to issue a large volume of cards to hopefully creditworthy heavy card users to maintain profitable operations. Though a card loan amount is usually relatively small, credit card loans earn the credit card issuer about three-quarters of its revenue in the form of interest earnings. The balance comes from interchange fees charged on the merchant. However, in their bid to boost market share in the face of intense competition, credit card-issuing banks are increasingly making easy the availability of credit, possibly to ever-riskier customers. This increases the risk that some borrowers will become over extended, especially during periods of financial stress. In addition, increased competition can often lead to account management practices that increase the risk profile of the credit card portfolio. Issues and challenges to the Credit Card Industry: 28 | P a g e

Implications: Credit card industry is growing at a very fast pace everywhere. But in their race they are forgetting that they are giving rise to defaults & manipulations all together. Credit card has changed the consumer behavior extensively. Nowadays credit card has become a fashion orientation symbol. People are now more towards impulsive buying than being frugal. They are buying blindly, things which are of no use to them & also beyond their paying capacity just because of the fact that with credit cards they can delay their payments. The bad practices & increased cases of cloning of credit cards are on a rise as people want to defer their payments & sometimes want to evade them. People are using credit cards more as a borrowing tool than a payment mechanism. This sudden rush in borrowing has prompted concerns that consumer debt may spiral out of control, especially in China, Thailand and South Korea. In South Korea, household debt grew 20.3 percent in 2001. In Thailand, the National Economic and Social Development Board have warned that the rapid growth in consumer lending, particularly through the use of credit cards, could jeopardize the country's future economic stability. Credit-card fraud is a problem that exclusively concerns emerging card markets. According to a report, the no. of consumers tend to use credit card beyond their paying ability is increasing. With over 100 million credit cards issued to the public around the end of 2002 (Kim 2002), consumer bankruptcies have erupted in recent years and there are grave concerns that the number will significantly increase as credit card debts mount up and distress more consumers financially. Deregulation by emergingmarkets governments and simplification of the credit-card application process have resulted in consumers taking advantage of the new lines of credit open to them, borrowing up to their full credit.

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One of the other challenges credit card issuers face is generating a sufficient volume of profitable accounts while, at the same time, being selective in granting accounts and credit lines to maintain an acceptable level of credit risk. The issuing bank manages these risks by issuing cards only to those with a risk profile it is comfortable with and then setting reasonable account limits. Banks are more likely to issue credit cards to relatively high-income individuals as there is greater likelihood that they will promptly repay their debts and have low default rates, besides having greater prospects of extensive card use. In a bid to lure customers, credit card companies have started unethical practices, in the absence of any regulatory framework. Most credit cardissuing banks, in violation of the spirit of basic banking principles, have been sending unsolicited cards to customers. Many customers are billed for cards lost in transit and unauthorized used by someone else. Moreover, propriety demands that additional cards be issued only on the request of customers and not otherwise. Many credit card issuers levy charges without seeking the consent of customers. For instance, Citibank, the largest issuer of credit cards in India, has been unilaterally levying a host of charges like Suraksha Credit Shield Premia, transaction Handling Charge and Suraksha Personal Accident Premia

Credit Card Industry in India: The Role of RBI. The card users privacy has been violated by poor orientation of the marketing agents, the Direct selling Agents(DSAs) and Direct marketing agents(DMAs) engaged by the card issuers. In their tele-marketing attempts, the marketing agents make repeated and untimely telephonic calls to prospects as well as clients. The card users are also harassed by the recovery agents and this has led to mounting customer complaints.Card users are also concerned about their privacy being breached since many

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times personal contact numbers are passed on to third parties by some unscrupulous elements with the institutions and their agents. The existing regulatory mechanism has been found wanting and

inadequate to ensure proper administration of card business, especially that of Credit Cards. This led to the current scenario of harassment of card users, their rising number of complaints and grievances, necessitating the Reserve Bank of India to intervene. The Reserve Bank of India (RBI) has thus issued guidelines for credit card operations in the country. These are aimed at disciplining & monitoring the credit card market which has been growing at 50% per annum. Henceforth, credit card issuers will have to adhere to these norms which, among other things, deal with issuance of additional cards, printing of annual interest rates, enhancement of credit limits, collection of debts, etc. There are more than 1.55 crore credit cards issued in the country, with many people having more than one credit card. In legal terminology, a customer is a principal and the bank is his agent. It means that the bank acts on behalf, and at the behest of the customer. The RBI is trying to restore this basic banking principle through the new norms. To achieve this, the RBI constituted a working group on Regulatory Mechanism for Cards. The guidelines are based on this groups recommendations. The RBI guidelines refrain banks from issuing unsolicited credit cards. Banks have also been barred from unilaterally upgrading credit cards and enhancing credit limits. They will also have to set up a Do Not Call Registry (DNCR) and abstain from calling/ sending SMSs to customers not wishing to receive marketing calls. As per the RBI norms in place, credit card issuers will not be able to levy any charge not explicitly indicated to the credit card holder at the time of issuing the card. This norm, however, will not cover charges like service tax, or other levies imposed by the government. Also, credit card issuers will be required to print Most Important Terms and Conditions (MITCs) in Ariel-12 font so that a customer is at least able to read them.

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At present, credit card issuers quote monthly interest rates, without explaining the method of computation of interest charges on revolving credit. Now, the RBI has made it mandatory for credit card issuers to quote annualised percentage rates (APR). This will help customers who are more familiar with annual rates. For instance, Citibank has been levying a monthly service charge, which may go up to 3.35% of the outstanding balance. This may not mean much to a customer unfamiliar with the dynamics of monthly interest rates. However, if told that Citibank is levying an interest rate which is as high as 40%, a customer would think twice before making use of revolving credit facilities. Credit card companies will also have to provide the method of calculating the APR (separately for retail purchases and cash advances) with a couple of examples for better comprehension by customers. RBI norms make it clear that card issuers will be fully responsible for all acts of omission or commission by their agents. This includes sales, marketing and recovery agents. The intervention of RBI has certainly helped the customer and made him aware of the rules and regulations to be followed by the banks. Conclusion:The plastic currency has opened up a pandoras box in the form of Credit Cards that adds to the ease & convenience of transaction settlements at the point of sale to the customers. There were co-branded Credit Cards with major airlines, star-hotel chains, star travel-houses etc. These marriages of convenience and alliances among the major players of the economy are evident as an on-going feature in the service sector. Plastic Cards have evolved as the most sophisticated and savvy product for corporate integration, tie-ups, alliances and multi-branding of products. This offers enhanced scope for horizontal as well as vertical growth. Apart from providing a number of advantages & benefits, it has also a flip side for the unwary card user. Ignorance of various terms and conditions of Credit Card agreement, especially the financial/cost implications of credit and irrational use of it can be detrimental to the interests of the customers. 32 | P a g e

This growth has also increased the chances of fraud in this industry. Still, instances of frauds can be minimized by being more alert while using Credit Cards, especially, on the internet. Switching on to Smart Cards and Photo Cards are a definite plus.

3.2 COMPANY PROFILEOur Profile Genesis IndusInd Bank derives its name and inspiration from the Indus Valley civilisation -a culture described by National Geographic as 'one of the greatest of the ancient world' combining a spirit of innovation with sound business and trade practices. Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja Group, conceived the vision of IndusInd Bank -the first of the new-generation private banks in India -and through collective contributions from the NRI community towards India's economic and social development, brought our Bank into being. The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable Prime Minister of India who was then the countrys Finance Minister, started with a capital base of Rs.1,000 million (USD 32 million at the prevailing exchange rate), of which Rs.600 million was raised through private placement from Indian Residents while the balance Rs.400 million (USD 13 million) was contributed by Non-Resident Indians.

A New Era

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IndusInd Bank, which commenced its operations in 1994, caters to the needs of both consumer and corporate customers. It has a robust technology platform supporting multi-channel delivery capabilities. IndusInd Bank has 365 branches, and 674 ATMs spread across 254 geographic locations of the country as on December 31, 2011.The Bank also has 2 Representative offices, one each in London and Dubai. The Bank believes in driving its business through technology. It has multilateral tie-ups with other banks providing access to their ATMs for its customers. It enjoys clearing bank status for both major stock exchanges BSE and NSE - and three major commodity exchanges in the country - MCX, NCDEX, and NMCE. It also offers DP facilities for stock and commodity segments. The Bank has been bestowed with the mandate of being a Settlement Banker for six tea auction centres.

RATINGS: ICRA AA for Lower Tier II subordinate debt program and ICRA AA- for Upper Tier II bond program by ICRA. CRISIL A1+ for certificate of deposit program by CRISIL. CARE AA for Lower Tier II subordinate debt program by CARE. Fitch AA- for Long Term Debt Instruments and Fitch A1+ for Short Term Debt Instruments by Fitch Ratings. Milestones With over 17 years of Operating History 2011 2012 Awarded as the Best Bank Mid-sized in BusinessworldPwC Best Banks Survey 2011. Awarded as the Best Mid-Sized Bank Bank in Business Today KPMG Best Banks Survey 2011. Awarded M.IT.R- 50 Marketing & IT Recognition Program amongst top 50 brands organised by Paul Writer in association with IBM. 34 | P a g e

Awarded

the CII Environment Best Practice Award 2012 for the Most

Innovative Environmental Project. Awarded in the Business Enterprise Services category for running ATMs on solar power Organised by Panasonic Green Globe Foundation. Awarded the status of Star Brand 2011 ICMR Star Brands of India Survey. Awarded the Best Bank in New Generation Category by the STATE FORUM OF BANKERS CLUB KERALA. 2010 2011 Most Improved Bank Performance of the Year awarded by Bloomberg UTV Financial Leadership Awards 2011. Winner of Best Use of technology in training and e-Learning Initiatives awarded by IBA Banking Technology Awards 2010. Runners up of Best Risk Management Initiatives awarded by IBA Banking Technology Awards 2010. Silver winner of Excellence in Business Process Management and Work flow in Australia and Asia Region Global awards by Workflow Management Coalition and BPM.com, USA. Talisma User awards for Enterprise Adoption of CRM 2010. Ranked 2nd in the fastest growing Bank (mid-size) category published in Indias Best Banks report by Business World and PWC. Excellence Award as the 2nd best New Generation Bank in Kerala for the second consecutive year awarded by the State Forum of Bankers Clubs, Kerala. 2009 2010 Awarded the "Best Priority Sector Bank" amongst the private sector banks by Duns & Bradstreet. Tier II Issue raised Rs. 4200 million in March 2010. Awarded the Technology Bank of the Year-2009 from IBA. Excellence Award, the 2nd best new generation bank in Kerala by the State Forum of Bankers Clubs, Kerala. Recognised for 'Best Performance in Credit Quality' by financial Express. Received the prestigious ISO 27001 certification for IT operations. 2008 2009 35 | P a g e

QIP Issue raised Rs. 4803 million in August 2009 Regulatory clearance for 113 new branches are in place (as of June 30,2010) Appointed as Clearing & Settlement Bank at 6 major Tea Auction centres (includes 2 which were added in 2010) Tied up with BONY Mellon for on line remittances from United States to India 2007 2008 GDR Issue - raised Rs 2,222 million; Ratings: ICRA Highest A1+ - CDs, Crisil P1+: CDs, FDs New Launch/Rollout: Mid-market Investment Bank, 3rd Party Distribution Platform, Warehouse Receipt Finance Awards/Recognition: The Smart Workplace - Economic Times, Best CSR Practice Company BSE/NASSCOM Extended microfinance to 300,000+ women by partnering leading MFIs like SKS Mircofinance Extensive IT initiatives Became clearing/settlement bank for NSE currency futures exchange New management team headed by Romesh Sobti inducted from ABN AMRO Bank NV 2006 2007 GDR - raised Rs 1,460 million, tied up with Cholamandalam MS for bancassurance Signed an agreement with National Multi Commodity Exchange Ltd as clearing banker 2005 2006 Tied-up with Religare Securities for offering 3-in-1 account covering banking, depository & securities trading Tied up with Aviva Life Insurance for bank assurance. 2004 2005 Signed an agreement with NCDEX as clearing banker Opened its second representative office in London 2003 2004 Ashok Leyland Finance Ltd, a leading NBFC merged with the Bank (total 115 36 | P a g e

branches), opened representative office in Dubai 2002 2003 IndusInd Enterprises & Finance Ltd, a NBFC & one of the promoters of the Bank amalgamated with the Bank Increased branch network to 53 2001 2002 Tie ups with exchange houses in Middle East and banks in the United States 1994 2000 IPO - raised Rs 1,800 million, became clearing bank to First Commodities Clearing Corporation of India 2000 Became clearing/settlement bank for BSE/NSE Raised Rs 1,000 million through preferential issue of shares Incorporated in 1994; Promoted by a group of Non Resident Indians. Started operations with Rs 1000 Mn Capital Brand IndusInd Bank has been aggressive in its brand building program since last year. As a part of the brand building exercise, the bank has taken many initiatives which have helped the brand connect up with the customers & enhance the visibility quotient. IndusInd Bank had launched its first ever mass media campaign in May-June 2009 along with its punchline Makes you feel richer and since then, the bank has been consistent in communication through Television, Radio, and Outdoor & print advertising. IndusInd Bank understands its customers money is not just money. It is the vehicle to realise their dreams! Hence, the bank aims to ensure that the customers experience with the bank is pleasant and enriching. That they get value for their money, enabling them to lead a richer, fuller, content life... For this, the bank: Offers a new level of banking better services, better understanding of unique needs and better management of finances Demystifies the banking process and makes it more accessible

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Apart from fulfilling traditional banking responsibilities, advises customers on how and where to use their money to get the best out of it

Projects an image of being a young, energetic, modern bank with values of dynamism, confidence and progression Further, as a banking partner, the bank also aims to help its customers discover how they can do more things with their money. In the recent advertising campaign, the Bank reinforces its focus on Innovative banking based on the philosophy of Responsive Innovation. The bank is taking responsiveness theme to customers and reinforces its commitment to give best-of-class services in the industry. Your favorite IndusInd Bank TV Commercials

Cash on Mobile ATMs

Direct Connect Service

Quick Redeem Service

IndusInd Bank Open 365 Days

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IndusInd Check on Cheque

IndusInd Choice Money ATM

IndusInd Account

Ready2Use

Savings IndusInd Online Payments

IndusInd Brand Campaign

IndusInd Mobile Alerts

Mission & VisionMission 39 | P a g e

We will consistently add value to all our stakeholders and emerge as the Best in class in the chosen parameters amongst the comity of banks, by doubling our profits, clients and branches within the next three years.

Vision IndusInd Bank will be: A relevant business and banking partner to its clients Customer Responsive, striving at all times to collaborate with clients in providing solutions for their Banking needs A forerunner in the market place in terms of profitability, productivity and efficiency Engaged with all our stakeholders and will deliver sustainable and compliant returns

PRODUCTS OF INDUSIND (Credit Cards)40 | P a g e

We, at IndusInd Bank, understand that you are unique and special. We have therefore created different credit cards that complement your lifestyle and offer you more than you expect. Important Note Currently Credit Card product & associated services are available in the following cities only Delhi/NCR (Including Noida, Gurgaon), Mumbai, Kolkata, Pune, Chennai, Bengaluru. You can apply for your IndusInd Bank Credit Card at all branches in these cities. Premium Credit Cards Signature Credit Card Platinum Credit Card Platinum Aura Credit Card Platinum Select Credit Card World Miles Credit Card

Co-branded Credit Cards Miles & More Credit Card by IndusInd Bank IndusInd Bank Landmark Credit Card

Core Credit Cards IndusInd Bank Gold Credit Card IndusInd Bank Business Credit Card IndusInd Bank Classic Credit Card 41 | P a g e

Platinum Aura Credit CardA card as versatile as you are. Here's a card that not only offers you best of lifestyle but also the flexibility of rewards points. Introducing IndusInd Bank Platinum Aura Credit Card that gives you the power and flexibility to make your choices. So, go ahead, and enjoy the lifestyle you've always dreamt of. Platinum Aura Reward IndusInd Bank Platinum Aura Credit Card gives you the opportunity of maximizing savings while you shop, travel or party by selecting any one of the tailor- made plan. We bring to you four different Platinum Savings Plan which provide you flexibility and exclusivity to save by earning points. Choose your Platinum Savings Plan: Platinum Aura Shop Plan IndusInd Bank Platinum Shop Plan manages your finances better and helps you save. Each time you spend on the listed spend categories with your IndusInd Platinum Aura Credit Card you earn savings points*, that you can later redeem against dues on your IndusInd Bank Platinum Aura Credit Card or airline miles.

Spend Categories Shopping in departmental stores Purchase of consumer durables or electronic items Restaurant bills Books

Savings points on Rs. 100 spent 4 savings points 2 savings points 1.5 savings points 1.5 savings points 42 | P a g e

All Other Spends on your card * 1 savings point = Re 0.50 or 0.5 airline mile

0.5 savings points

Platinum Aura Shop Plan Value Chart Savings points Spend Category Shopping in departmental stores Purchase of consumer durables or electronic items Restaurant bills Books All other spends 1.5 savings points 1.5 savings points 0.5 savings points Your total savings points# Platinum Aura Home Plan The IndusInd Bank Platinum Home Plan gives you the flexibility to save while you shop for your home. Each time you spend on the listed spendcategories with your IndusInd Bank Platinum Aura Credit Card, you earn savings points* that you can later redeem against dues on your IndusInd Bank Platinum Aura Credit Card or airline miles. Spend Categories Grocery shopping Cellphone bills Savings points on Rs. 100 spent 4 savings points 2.5 savings points Rs. 24,000 Rs. 4,000 Rs. 15,000 360 60 75 2,795 2 savings points Rs. 35,000 700 earned on every Rs. 100 spent** 4 savings points Estimated annual expenses** Rs. 40,000 Annual savings points# 1,600

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Electricity bills Insurance premium Medical Spends All Other Spends

2.5 savings points 1.5 savings points 1.5 savings points 0.5 savings points

* 1 savings point = Re 0.50 or 0.5 airline mile Platinum Aura Home Plan Value Chart Spend Category Grocery Cellphone bills Electricity bills Insurance premium Medical Spends All other spends Savings points earned on every Rs. 100 spent** 4 savings points 2.5 savings points 2.5 savings points 1.5 savings points 1.5 savings points 0.5 savings points Your total savings points# Platinum Aura Travel Plan The IndusInd Bank Platinum Travel Plan is the ideal plan for your frequent traveling needs. Each time you spend on the listed spend categories with your IndusInd Bank Platinum Aura Credit Card you earn savings points, that Estimated annual expenses** Rs. 36,000 Rs. 18,000 Rs. 12,000 Rs. 10,000 Rs. 5,000 Rs. 18,000 Annual savings points# 1,440 450 300 150 75 90 2,505

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you can later redeem against dues on your IndusInd Bank Platinum Aura Credit Card or airline miles. Spend Categories Hotel expenses Airline Tickets Car rental expenses Rail tickets All Other Spent Savings points on Rs. 100 spent 4 savings points 2.5 savings points 1.5 savings points 1.5 savings points 0.5 savings points

* 1 savings point = Re 0.50 or 0.5 airline mile Platinum Aura Travel Plan Value Chart Spend Category Hotel expenses Airline Tickets Car rental expenses Railway tickets All other spends Savings points earned on every Rs. 100 spent** 4 savings points 2.5 savings points 1.5 savings points 1.5 savings points 0.5 savings points Your total savings points# Estimated annual expenses** Rs. 35,000 Rs. 45,000 Rs. 8,000 Rs. 4,000 Rs. 15,000 Annual savings points# 1,400 1,125 120 60 75 2,780

# The above illustrations are based on hypothetical estimates of periodic expenses. 45 | P a g e

Platinum Aura Party Plan With our IndusInd Bank Platinum Party Plan you can indulge in all the partying and socialising that your lifestyle demands. Each time you spend on the listed spend categories with your IndusInd Bank Platinum Aura Credit Card, you earn savings points that you can later redeem against dues on your IndusInd Platinum Aura Credit Card or airline miles Savings points on Rs. 100 spent 4 savings points 2 savings points 2 savings points 1.5 savings points 0.5 savings points

Spend Categories Restaurant bills Shopping in departmental stores Payments in Bars & Pubs Movie Tickets All Other Spent

* 1 savings point = Re 0.50 or 0.5 airline mile Platinum Aura Party Plan Value Chart Spend Category Restaurant bills Shopping in departmental stores Payments in Bars & Pubs Movie Tickets All other spends 2 savings points 1.5 savings points 0.5 savings points Your total savings points# Rs. 20,000 Rs. 5,000 Rs. 15,000 400 75 75 2,790 2 savings points Rs. 40,000 800 Savings points earned on every Rs. 100 spent** 4 savings points Estimated annual expenses** Rs. 36,000 Annual savings points# 1,440

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# The above illustrations are based on hypothetical estimates of periodic expenses. Redemption of Reward Points: We understand your need for choice and have tailored our redemption options to provide you the best of both worlds. Redemption Option 1: You can now convert your reward points into cash credit and use them to pay the outstandings on your card. Your reward points will be converted into cash credit @ 1 reward point = Re. 0.5 of cash value. All you need to do to redeem your reward points into cash credit is to call our phone banking number on 1860 267 7777. Redemption Option 2: We understand that your lifestyle and business take you across the world. We present you a redemption option that will add miles to wherever you travel, in association with our partner airlines. Jet Airways: If you are a Jet Privilege member, you can redeem your reward points on IndusInd Bank Platinum Aura Credit Card for JPMiles at the following rate IndusInd Bank Platinum Aura Credit Card 100 Reward Points Kingfisher Airlines:

Jet Privilege 50 JP Miles

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If you are a King Club member, you can redeem your reward points on IndusInd Bank Platinum Aura Credit Card for King Miles at the following rate:IndusInd Bank Platinum Aura Credit Card 100 Reward Points

King Club 50 King Miles

To redeem your Reward Points against partner miles, simply

Accumulate a minimum of 500 Reward Points. Call our 24/7 phone banking team at 1860 267 7777. Quote your IndusInd Bank Platinum Aura Credit Card number and Jet Privilege/King Club membership number. Specify the number of reward points you would like to redeem. The reward points will be redeemed in multiples of 100. The miles will be credited to your respective membership account within 15 working days.

Platinum Aura Travel Travel in lap of luxury across the country for business or pleasure. IndusInd Bank Platinum Aura Card provides range of offers for its Platinum Aura Credit Card customers, where you fly effortlessly, enjoy while travelling and also save big.

Priority Pass Program : IndusInd Bank values your enduring patronage and strives to offer the very best of services to keep our relationship growing. Because you are exclusive to us, we have brought a unique complimentary priority pass program which gives you access to 600 lounges across the world.

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Value Offering: Annual membership Priority Pass Membership Travel Plus Program: IndusInd Bank understands your travel needs and brings to you a u a unique travel assist program - 'Travel Plus'.With the Travel Plus Program, you enjoy special waivers on lounge usage charges outside India. Value Offering: Benefits Lounge usage Monthly Saving Maximum of 10 lounge usage/yr of value $27 Travel Insurance Cover Details: IndusInd Bank has tied up with ICICI Lombard General Insurance Company Limited (Insurance Company) as a group manager to provide Cardholders with the following insurance cover under the Program: Insurance cover Overseas medical insurance (up to 20 days per year) Lost baggage Delayed baggage Loss of passport Lost ticket Missed connection Rs. 100,000 Rs. 25,000 Rs. 50,000 Rs. 25,000 Rs. 25,000 Sum assured (up to) $ 100,000 Annual Saving $270 (Rs. 13,500 approximately) Priority Pass cost USD99 X 2 Annual Benefit USD 198 (Rs 9,900 per annum approximately)

Enjoy all these benefits of Travel Plus Program at a nominal fee of Rs. 3,000 per annum.

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Platinum Aura Concierge Platinum Aura Concierge IndusInd Bank Platinum Aura Credit Card enables you to have a team of professionals, accessible from any corner of the world to assist you with flight booking, hotel reservation and other lifestyle needs. This is a complimentary service with host of premium benefits. All you have to do is call ask for assistance, sit back and relax. We take care of the rest. Concierge offers you: Pre-trip Assistance:No more pre-trip worries. Collect all the information you need to know before you go. The concierge will provide you with all the information about your travel destination, line the weather, important landmarks, modes of transport etc. Hotel Reservation:Let the concierge handle your reservations. The concierge shall make all the arrangements in the finest hotels across the world to ensure you have a pleasurable and comfortable stay. Flight Booking:The concierge will make all the necessary flight arrangements to help you get to your desired destination.

Sports and Entertainment Booking:-

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Whether it's the FIFA finals (FIFA needs to be changed) or strawberry and cream at the Wimbledon, the concierge will make sure you don't miss out on your favourite event. Exclusive Booking:If you are interested in special events like workshops or talks by eminent personalities, the concierge will provide you with all the information you need and also make reservations on your behalf (whenever possible). Flower and Gift:Need help arranging a special gift or want to send flowers to that special someone, leave it to the concierge. Now, you can have a gift delivered to anyone, anywhere in the world, whether it is Swiss watches of French wine, the concierge will ensure that it is delivered to your loved ones. Platinum Aura Freedom Get freedom from surcharge on petrol pumps across India. With a waiver* of 2.5% surcharge at any petrol pump across India. Value Offering: Petrol Surcharge Waiver Monthly fuel usage @Rs 8000 The information given in the value offering is based on certain assumptions and is for illustration purpose only. Actual savings will depend on the usage pattern of a particular cardholder. Platinum Aura Assurance Total Protect: Monthly Savings Rs 200 Annual Savings Rs 2,400

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You dont need to worry about fraudulent usage of your card anymore. 'Total Protect' is a first- of- its- kind program which covers you for a sum up to the credit limit on your credit card and is available on add-on cards as well. With us, you can be worry free about fraudulent usage of your card. Also get a complimentary Personal Air Accident insurance cover up to 25 lacs. Total Protect' covers you for the following:

Unauthorized Transactions in case of loss / theft of Card: An insurance cover is provided up to 48 hours prior to you reporting the loss of your card.

Counterfeit Fraud: The IndusInd Bank Platinum Aura Credit Card offers you insurance to protect yourself against incidents of counterfeit fraud.

Air accident cover: With the IndusInd Bank Platinum Aura Credit Card, you also get a complimentary Personal Air Accident insurance cover of up to Rs.25 lacs. With IndusInd Bank around to lend you a helping hand, you have very little to worry about. Platinum Aura Value Table: Annual Estimation Platinum Aura Privileges Priority Pass Membership for you and your partner Savings on Fuel Surcharge## Annual value of Reward Points on an average spend of Rs 10,000 per month. Reward 52 | P a g e Savings on Market Value $99 x 2 = Rs 9900 Rs 2,400 Rs 1,500

Points earned will depend on Savings Plan selected Total Savings estimate of expenses. Rs 13,800 *The above illustration is based on hypothetical

Platinum Select Credit Card

The IndusInd Bank Platinum Select Credit Card has been crafted to perfection with a range of exclusive privileges to match your exquisite tastes. This credit card sets you apart from the rest of the world. Benefits Platinum Select Rewards Earn reward points on every Rs. 100 you spend using your platinum select credit card. Redeem these points for airline miles or against your outstanding. The rewards program on your IndusInd Bank Platinum Select credit card has been specially designed to cater to your premium lifestyle. For every Rs.100 spent on your IndusInd Bank Platinum Select credit card, you get 1 reward point.

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Redemption of Reward points: You have a range of exciting options to choose from for redeeming your rewards points earned on your platinum select credit card. Redeem against airmiles: You can also redeem your reward points for air miles on our domestic and international partner airlines and earn free trips to your dream destinations. 100 Reward Points = 100 airmiles on partner domestic and international airlines. Redeem against cash value: You can also redeem your reward points against your outstanding. 1 Reward Point = Re. 0.75 of cash value

Platinum Select Personnel Plan a trip, make reservations, book a car and even send flowers and gifts to your loved ones with the concierge service. IndusInd Bank provides you with a 24/7 concierge service which will take care of all your needs. IndusInd Bank Platinum Concierge assistance service offers you the following benefits: Personal Reservations The platinum concierge service will make all the arrangements in the finest hotels across the world to ensure that you have a pleasurable and comfortable stay. Personal Limousine Be as a sedan or limousine, the platinum concierge will be at your service whenever you need it. Personal dining out 54 | P a g e

Anniversary, dinner or business lunch, leave it to the concierge to organize the most special events in your life. Get reservations at the finest eateries around the world. Personal Flower and Gift arrangement Now, you can have a gift delivered to anyone, anywhere in the world. The platinum concierge will ensure your loved one has it delivered to them. Platinum Select Organiser Get an additional business card for tracking your business expenses separately. IndusInd Bank Platinum Select credit card helps you take your business forward by providing you an additional card for your business expenses and an year-end summary of accounts. Additional card for business expenses Now you can keep track of your business expenses separately, segregating your business and personal expenses. You can apply for an additional card and your statement will show your expenses separately.

Platinum Select Freedom Now you wont have to pay a 2.5% surcharge* on fuel at any petrol pump across India. Get a waiver of 2.5% surcharge* at any petrol pump across India with using your platinum select credit card. This waiver is applicable for all transactions between Rs. 400 to Rs. 4,000 only. Platinum Select Assurance** Get a complimentary personal air accident insurance cover of up to Rs. 25 lakhs, allowing you to fly worry-free! 55 | P a g e

What's more, you are also protected against unauthorized transactions on your card with 'Total Protect'. Total Protect covers you for a sum up to your credit limit and is available on add-on cards as well. Platinum Select Travel Plus Exclusive International travel privilege plan that protects and pampers. IndusInd Bank values your enduring patronage and strives to offer the very best of services to keep our relationship growing. Because you are exclusive to us, we have brought a unique travel assist program - 'Travel Plus'. Extensive International travel insurance benefits (up to 20 days per year) Being a Travel Plus Program member, ensures that you are at complete peace of mind while traveling abroad. You can avail of insurance covers for medicals, baggage protection or other possible misfortunes such as loss of air ticket or a missed flight connection. Sum assured (up to) $ 100,000 Rs. 100,000 Rs. 25,000 Rs. 50,000 Rs. 25,000 Rs. 25,000

Insurance cover Overseas medical insurance Lost baggage Delayed baggage Loss of passport Lost ticket Missed connection

Waiver of lounge usage charges As a IndusInd Bank cardholder, you have access to over 500 VIP airport lounges around the world as part of the Priority Pass Program. With the Travel Plus Program, you also enjoy special waivers on lounge usage charges outside India. For a maximum of ten lounge usages per year, $27 is waived on every usage which means you can save up to $270 (Rs. 10,800 56 | P a g e

approximately)! Enjoy the benefits of Travel Plus Program at a nominal fee of Rs. 3,000 per annum Convert Reward Points Jet Airways Convert Reward Points into JPMiles. Now spend your way to free flights on Jet Airways using your IndusInd Bank Credit Card! If you are a JetPrivilege member, you can now redeem your reward points on IndusInd Bank Credit Card* for JPMiles, at the rate of 1JPMile per reward point. For example: If you have 2,500 reward points on your IndusInd Bank Credit Card, you can redeem them for 2,500 JPMiles, and add to the JPMiles balance in your JetPrivilege membership account To redeem your reward points for JPMiles, you need to: Call our 24/7 phone banking team at 1860 267 7777# Quote your IndusInd Bank Credit Card number and JetPrivilege membership number Specify the number of reward points you would like to redeem for JPMiles The JPMiles will be credited to your JetPrivilege membership account within 15 working days. Kingfisher Airlines Convert 100 Reward Points to 100 King Miles. IndusInd Bank in partnership with King Club, the frequent flyer programme of Kingfisher Airlines, Indias only Five Star airline now offers you with an the opportunity to earn King Miles on your everyday expenses. IndusInd Bank Credit Cardholders* who are King Club members can convert Reward

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Points on their IndusInd Bank Credit Card to King Miles and earn their free flights faster. Convert your credit card points to King Miles If you have a IndusInd Bank Card, you can convert your IndusInd Bank Reward Points into King Miles and get closer your free flights. You can convert your reward points into King Miles in the following ratio: IndusInd Bank Credit Card 100 Reward Points

King Club 100 King

Miles To convert Reward Points on your IndusInd Bank Credit Card to King Miles, Collect a minimum of 100 Reward Points. Call the IndusInd Bank 24-Hour Phone Banking Number on 1860 267 7777.o

simplyo o

Quote your IndusInd Bank Credit Card number and your King Club membership number. Specify the number of IndusInd Bank Reward Points you would like to redeem for King Miles (in multiples of 100).

o

Now speed up your way to free flights on Kingfisher Airlines using your IndusInd Bank Credit Card!

Platinum Credit Card

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The IndusInd Bank Platinum Credit Card is a premium offering with a comprehensive range of travel, lifestyle and golf benefits. Now, you can keep up to the commitments that your lifestyle demands. Benefits Malaysia Airlines Malaysia Airlines is the worlds leading airlines to Asia. The airline holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years IndusInd Bank in association with Malaysia Airline offers you to get one ticket with complete base fare waiver on the purchase of business class return ticket for travel on Malaysia Airlines on key destinations for you and your companion. Use your IndusInd Bank Signature credit card to purchase two return tickets for the price of one ticket. Besides this enjoy complimentary usage of the Business Class Lounges in India and the Golden Lounge at Kuala Lumpur International Airport (KLIA). You will also be entitled to get one F1 ticket per passenger if you avail the offer for travel between 15th March 2012 to 25th March 2012. You will also get 1000 Enrich Miles as Bonus which will be credited into your Enrich Card within 2 weeks after enrollment. You are also entitled to 50% extra Enrich flyer award miles on payments made through IndusInd Bank Signature credit cards. Offer applicable from 1st January 2012 to 31st December 2012 Please follow these steps to book tickets Customer contacting Malaysia Airlines 1. Customer will contact Malaysia Airlines Reservation and make a booking 2. Passenger to come to the Malaysia Airlines city office and show his IndusInd Bank Signature or Platinum Credit Card 3. Counter staff to issue the ticket after verifying the form of payment (Credit Card)

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Customer contacting Travel Agent 4. Customer will contact a travel agent for the booking 5. Travel agent will contact the Malaysia Airlines office and makes a booking. 6. Travel agent will send copy of IndusInd Bank Signature or Platinum Card to Malaysia Airlines counter 7. Travel agent will send across a Virtual Multi-purpose document (VMPD) to the Malaysia Airlines counter for ticketing along with passport copy 8. Malaysia Airlines Counter staff will issue ticket and mail to the agent / passenger Platinum rewards Special customers like you deserve superior recognition and status. The IndusInd Bank Platinum Rewards is a complimentary elite points program. It is specially designed to cater to your lifestyle, enabling you to enjoy the power and freedom of maximum flexibility and limitless access. You earn 1.5 points each time you spend Rs. 100 on your platinum credit card. You can redeem the points on your IndusInd Bank Platinum Credit Card for the following: Redeem against Airline miles 100 Reward Points = 100 Airline miles Redeem against the outstanding on your credit card 1 Reward Point = Re. 0.85 of cash value Please note that you need a minimum of 250 Reward Points to redeem your points. Platinum Quick Redeem Service Get rewarded quickly! Our constant effort is to add value to our relationship and in our endeavor to do just that, we have introduced the quick redeem service. Transact on your IndusInd Bank Platinum credit card and request for quick redemption. 60 | P a g e

The service offers you to earn reward points in a transaction and to redeem these earned points instantly. Quick Rewards Redemption Process Once the transaction is done on your IndusInd Bank Platinum Credit Card, you will receive a transaction message The transaction message will be followed immediately by a Quick Redemption Service message highlighting the number of rewards earned on the particular transaction The message will mention rewards earned on that particular transaction If you want to redeem your reward points, SMS keyword Instant followed by number of reward points mentioned in previous message and forward it to 5676757 and we shall process your request in 3 working days Example If you do a transaction of Rs. 10,000 on your IndusInd Bank Platinum Credit Card then, Transaction Value Reward Points Merchant Earned@ 1.5% Name 10,000 150 You will receive SMS communicating 150 reward points you have earned for this transaction. Platinum personnel For the first time in India, IndusInd Bank introduces an emergency service for 24 hours a day, 365 days of the year. Auto Assist When on the road, there could be a thousand things that could interrupt your journey. An unwanted flat tyre, an unforeseen vehicle break-down or any other emergency can now be tackled with your Platinum Auto Assist. For the first 61 | P a g e

time in India, IndusInd Bank introduces an emergency service for 24 hours a day, 365 days of the year. So, when in need on the road, all you have to do is call our Platinum Auto Assist. International Concierge Assistance Imagine having a man Friday. Someone who you trust would make the right decision and someone who would be there to serve you 24/7 all 365 days. Welcome to the world of IndusInd Bank Platinum Concierge Assistance. Expect exclusive service, for you hold the tag of being among the privileged few. And at every step of the way, youll receive the prestige and recognition that you deserve, an impeccable service where your personal preferences take precedence. Be it booking tickets for a Brazil soccer match, gifting a special soft toy to your loved one or acquiring passes to the Bryan Adams concert. We do it all on your behalf. Disclaimer The concierge services are brought to you by Europ Assistance India Pvt Ltd (Service Provider). Both IndusInd Bank and the Service Provider shall be acting under instructions through specified media from the Cardholder under good faith. All services would be rendered on a best efforts basis and shall be subject to the availability and existence of the third party providers to render the service. IndusInd Bank & the Service Provider shall not be responsible for delays or failures to provide services caused by any strike, war, invasion, act of foreign enemies, armed hostilities (regardless of a formal declaration of war), civil war, rebellion, insurrection, terrorism, political coup, riot and civil commotion, administrative or political impediments, or radioactivity or any other event of force majeure or Act of God which prevents the Service Provider from rendering the services. The services shall be available to the Cardholder only if the Cardholders credit card is in live status and the transactions 62 | P a g e

ordered by the Cardholders is within the available credit limit on the credit card. The Cardholder agrees that transaction charges and cost of the goods ordered shall be debited from his IndusInd Bank platinum credit card account. The transaction will be carried out by the service provider based on the instructions provided to them by the Cardholder. IndusInd bank does not underwrite or warrant the services of service providers/ goods of the vendors procured using the platinum credit card and shall not be responsible for any defect, deficiency, delay or imperfection in such goods/ services or for any loss or damage suffered or personal injury caused to the Cardholder directly or indirectly by the use or non-use of the goods/ services provided by the respective vendors/ service providers. IndusInd Bank reserves the right to modify wholly or in part the scope of the services being offered under this facility. Platinum assurance Get a complimentary insurance cover up to Rs. 25 lakh. Comprehensive Travel Insurance Unforeseen events often take you by surprise. With our comprehensive travel insurance up to Rs. 25 lakhs, you are always prepared. Be assured that your loved ones are secure and always have a helping hand with the IndusInd Bank Platinum Credit Card. Complete security with Total Protection With the IndusInd Bank Platinum Credit Card we offer you the following complimentary insurance features to make your card usage as safe and secure as possible: Total Protection

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Total Protection is a unique IndusInd Bank feature that covers you for unauthorised transactions on your card at merchant establishments. Total Protection covers you for a sum up to the credit limit on your card. Total Protection covers the following: Unauthorized transactions in case of loss / theft of card: We provide an insurance cover up to 48 hours prior to your reporting the loss of your card to IndusInd Bank. Counterfeit Fraud: In case your card or its details are stolen the IndusInd Bank Platinum Credit Card offers you insurance to protect yourself against unscrupulous usage of your card. Platinum organizer Get additional card for tracking your business expenses separately. Additional Card for business expenses IndusInd Bank now offers an additional card for your business expenses. This gives you the advantage of tracking your business expenses separately and allows you to have a record segregating your business and personal expenses. Year End summary of accounts When you spend, we take care that a record of your expense is maintained. Your card provides you with a YearEnd summary of your spends to give you a 360 degree view of your card spends. With this, you can enjoy convenience and use this benefit to help simplify budgeting and tax preparation. Platinum travel plus IndusInd Bank values your enduring patronage and strives to offer the very best of services to keep our relationship growing. Because you are exclusive to us, we have brought a unique travel assist program - 'Travel Plus'. Extensive International travel insurance benefits (up to 20 days per year) 64 | P a g e

Being a Travel Plus Program member, ensures that you are at complete peace of mind while traveling abroad. You can avail of insurance covers for medicals, baggage protection or other possible misfortunes such as loss of air ticket or a missed flight connection. Insurance cover Overseas medical insurance Lost baggage Delayed baggage Loss of passport Lost ticket Missed connection Sum assured (up to) $ 100,000 Rs. 100,000 Rs. 25,000 Rs. 50,000 Rs. 25,000 Rs. 25,000

Enjoy the benefits of Travel Plus Program at a nominal fee of Rs. 3,000 per annum Platinum Value Expect unparalleled privileges and benefits from IndusInd Bank Platinum Card. These privileges and benefits give you much more value than the actual cost of the card. Value Table Platinum Privileges Estimated Savings on Market Value Priority Pass Membership for yourself & your partner $99 x 2 ~ Rs 7600 Rs 3,000 on estimated 100 Savings on International Roaming Cost in London min of call time Rs 6,000 on rental of a Toyota Corolla for 4 days Complimentary golf twice a month at any of the 2 prestigious clubs (assuming Rs 2,250 green fees per Rs 50,000 18 hole round) Movie tickets at theaters 4 times a month Rs 12,000 Savings on Fuel Surcharge* Rs 2,400 Annual value of Reward Points on an average spend Rs 4,590 of Rs 30,000 per month (450 points per month) Total Savings Rs 85,590

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Signature WelcomeWelcome to the Signature Life. With the IndusInd Bank Signature Credit Card you can enjoy all the privileges that you deserve. The rewards of the Signature Life are many. The choice is yours. Choose any one of the options from a select collection of welcome gifts for you. Jet Airways: Fly high to your destination with Jet Airways promotion codes that will entitle you to a one way journey of your choice. The promotion codes will enable you to avail 100% discount on base fare. All applicable taxes and other charges will need to paid by the customer using the IndusInd Bank Signature Credit Card. Mont Blanc: Choose from an eclectic range of Mont Blanc products with a welcome gift voucher. Simply call concierge at 1860 267 7777 to book your personal preview at select Mont Blanc boutiques*. Signature Reward The Rewards program on your IndusInd Bank Signature Credit Card is designed for simplicity. The IndusInd Bank Signature Credit Card allows you to earn rewards faster and gives you two simple options to redeem them as per your convenience. Earning of Reward Points: Watch your reward points grow by using your IndusInd Bank Signature Credit Card for business or pleasure wherever and whenever you choose. For every Rs.100 spent on your IndusInd Bank Signature Credit Card, you get 1.5 Reward Points. Redemption of Reward Points: 66 | P a g e

We understand your need for choice and have tailored our redemption options to provide you the best of both worlds. Redemption Option 1: You can now convert your reward points into cash credit and use them to pay the outstandings on your card. Your reward points will be converted into cash credit @ 1 reward point = Re. 1 of cash value. All you need to do to redeem your reward points into cash credit is to call our phone banking number on 1860 267 7777. Redemption Option 2: We understand that your lifestyle and business take you across the world. We present you a redemption option that will add miles to wherever you travel,in association with our partner airlines. Jet Airways: If you are a Jet Privilege member, you can redeem your reward points on IndusInd Bank Signature Credit Card for JPMiles at the following rate

IndusInd Bank Signature Credit Card 100 Reward Points Kingfisher Airlines:

Jet Privilege 100 JP Miles

If you are a King Club member, you can redeem your reward points on IndusInd Bank Signature Credit Card for King Miles at the following rate:-

IndusInd Bank Signature Credit Card 100 Reward Points

King Club 100 King Miles

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To redeem your Reward Points against partner miles , simply

Accumulate a minimum of 500 Reward Points. Call our 24/7 phone banking team at 1860 267 7777. Quote your IndusInd Bank Signature Credit Card number and Jet Privilege/King Club membership number. Specify the number of reward points you would like to redeem. The reward points will be redeemed in multiples of 100. The miles will be credited to your respective membership account within 15 working days.

Signature Quick Redeem Service Get rewarded quickly! Our constant effort is to add value to our relationship and in our endeavor to do just that, we have introduced the quick redeem service. Transact on your IndusInd Bank Signature credit card and request for quick redemption. The service offers you to earn reward points in a transaction and to redeem these earned points instantly. Quick Rewards Redemption Process

Once the transaction is done on your IndusInd Bank Signature Credit Card, you will receive a transaction message The transaction message will be followed immediately by a Quick Redemption Service message highlighting the number of rewards earned on the particular transaction

The message will mention rewards earned on that particular transaction If you want to redeem your reward points, SMS keyword Instant followed by number of reward points mentioned in previous message and forward it to 5676757 and we shall process your request in 3 working days

Example

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If you do a transaction of Rs. 10,000 on your IndusInd Bank Signature Credit Card then

Reward Transaction Value Points Earned@ 1.5% 10,000 150 Shoppers Stop Merchant Name

You will receive SMS communicating 150 reward points you have earned for this transaction. Signature Golf IndusInd Bank Golf Program* is a comprehensive program for golf enthusiasts. IndusInd Bank invites its Signature cardholders to tee-off as green fee players and enjoy complimentary rounds of golf. Complimentary green fees can now be enjoyed at the following clubs:

Golden Greens Golf and Country Club, Gurgaon Madras Gymkhana Club(Guindy Golf Course), Chennai Jaypee Greens, Greater Noida Tollygunge Club, Kolkata Clover Greens Golf Course, Bangaluru Willingdon Sports Club, Mumbai Aamby Valley Golf Course, Aamby Valley, Maharashtra

Discounted coaching lessons can be enjoyed at the following clubs: The IndusInd Bank Golf Program offers up to 20% discount on golf lessons at the following clubs:

Golden Greens Golf and Country Club, Gurgaon Jaypee Greens, Greater Noida 69 | P a g e

Sun Palm Driving Range, Chennai Pro Touch Golf Academy (Tollygunge), Kolkata Touch Golf Academy, Bangaluru Golden Swan Country Club, Thane

Value Offering: Golf Benefits 10 Golf lessons Complimentary Golf Hole in one insurance Offer Rs. 300 per session month Complimentary Total Annual Savings 20,000/77,000/Annual Savings 3,000/-

Two 2,250 green fees per 54,000/-

Signature Life Movies are magical and what better way to experience them than with someone special. As a IndusInd Bank Signature Credit Cardholder, you can book movie tickets with our partners, Cinemax, bookmyshow, Fame Cinemas and Sathyam Cinemas for you and your companion for the price of one Cinemax:

Buy one movie ticket and get the other one absolutely free*. Customer can avail up to 2 free tickets in a month. Offer valid across all Cinemax screens in India. Please log onto www.cinemax.co.in to book your tickets today.

Bookmyshow.com:

Buy one movie ticket and get the other one absolutely free*. Customer can avail up to 4 free tickets in a month. Offer valid on all theatres registered with Bookmyshow across all major cities. Please log onto www.bookmyshow.com to book your tickets today. 70 | P a g e

Fame Cinemas: Gold Lounge Offer :

Buy one movie ticket and get the other one absolutely free*. Customer can avail unlimited free tickets in a month. Offer valid in Mumbai (excluding Malad),Kolkata and Bengaluru. Please log onto www.famecinemas.com to book your tickets today.

Silver, Premier and Executive Class:

Buy one movie ticket and get the other one absolutely free*. Customer can avail unlimited free tickets in a month. Offer valid on all theatres registered with Fame Cinemas across all major cities. Please log onto www.famecinemas.comto book your tickets today.

Sathyam Cinemas:

Buy one movie ticket and get the other one absolutely free*. Customer can avail up to4 free tickets in a month. Offer valid in Chennai only. Please log onto www.thecinema.in to book your tickets today.

Value Offering: Offer Cinemax Bookmyshow Fame Sathyam Grand Total Monthly Saving Rs.500 Rs.500 Rs.1200 Rs.480 Rs.2680 Annual Savings Rs.6000 Rs.6000 Rs.14400 Rs.5760 Rs.32160

*The above illustration is based on hypothetical estimate of expenses Signature Travel Being a frequent globetrotter was never this rewarding. IndusInd Bank Signature Card presents a range of offers for its Signature Card customers, where you can save big, fly effortlessly and enjoy when travelling. 71 | P a g e

Malaysia Airlines Offer Malaysia Airlines is the worlds leading airlines to Asia. The airline holds a lengthy record of service and best practices excellence, having received