In a credit card market increasingly obsessed with luxury perks and premium rewards, BoB Card, the subsidiary of Bank of Baroda, is charting a different course. The company is strategically pivoting towards healthcare, wellness, and insurance-led benefits to carve out a distinct niche and attract specific customer segments.
A Shift from One-Size-Fits-All to Cohort-Centric Strategies
While many issuers chase high-spending customers with luxury experiences, BoB Card is responding to rising medical costs and evolving customer preferences. The company is deliberately moving away from generic offerings to develop tailored products for defined demographic groups. Key segments being targeted include Gen Z users, women, working professionals, and uniformed personnel.
A prime example of this strategy is the recently launched Tiara credit card, designed specifically for women. This card provides a free annual pap smear test and mammography, alongside lifestyle benefits valued at up to ₹31,000. Ravindra Rai M, Managing Director and CEO of BoB Card, emphasized the focus on health, stating, "The next big thing is health because healthcare has become very expensive." He added that the intent was to create something inclusive, moving beyond traditional rewards.
Partnerships and Product Innovation for Scale
BoB Card's approach extends beyond single products. The issuer has introduced insurance-linked covers for army and police personnel, where the cover activates upon card usage. For these profession-specific cards, benefits like add-on cards for family, reward points, and lounge access are also offered. The company is actively expanding partnerships across insurance, healthcare, and wellness, including tie-ups with hospitals for diagnostics.
To accelerate growth and innovation, BoB Card has partnered with fintechs like OneCard, Uni, and Scapia. Rai noted that combining the intent of a traditional issuer with the flexibility of new-age fintechs works well. In the premium segment, partnerships are more lifestyle-oriented, exemplified by their first airline co-branded card with Etihad Airways, marking a move into international travel benefits.
Growth Ambitions and Market Position
As one of only two standalone credit card issuers in India alongside SBI Card, BoB Card is aggressively pursuing growth while monitoring margins. The company is investing in technology to improve underwriting, onboarding, grievance redressal, and support for EMI-led purchases. Rai stated a clear long-term goal: to break into the top five credit card issuers in the country by 2027-2028.
To fund this expansion, the company raised ₹350 crore in 2024 and plans to seek more capital from its promoter in the next financial year. According to RBI data from November 2025, BoB Card had 3 million cards-in-force, a 4.2% annual increase, placing it ninth by card volume. Its monthly transaction value stood at ₹3,338 crore, ranking it 11th. For the first half of the current financial year, BoB Card reported a net profit of ₹23.22 crore.
The broader industry context shows robust growth, with 114.9 million total outstanding cards accounting for monthly spends of ₹1.9 trillion as of November 2025, underscoring the competitive yet fertile market BoB Card is navigating with its specialized strategy.
