A  favourite of many global chief executives and celebrities, the American Express card, or Amex card, now has a competitor in India.

HDFC Bank, the second-largest private sector bank in the country, on Tuesday launched 'Infinia' cards for the uber-rich, high net worth community in India. To be given “by-invitation only”, Infinia cards are expected to complete HDFC Bank's product suite in the credit cards space.

“We have positioned it directly against Amex, and I believe our card is a better product,” Aditya Puri, managing director, HDFC Bank, told reporters at a press conference on Tuesday.

Infinia cards would have no spending limits and the interest rate is fixed at 1.99 per month, one of the lowest in the industry. The card also offers a host of other benefits, including Rs 3-crore air-accident cover, unlimited access to 600 airport lounges globally and dining options at hotels managed by Taj Hotels Resorts and Palaces.

“What prompted us to conceive Infinia was the need our clients felt for such a product. We are confident Infinia would soon be the card of choice for India's rich,” Puri, who was also the first recipient of the card, said.

HDFC Bank plans to initially issue the card to 5,000 customers. Cardholders have to pay a joining fee of Rs 30,000 and a renewal fee of Rs 10,000 every year. While the bank would focus on offering the card to its own clients, it also plans to target some of the high net worth clients of other banks.

While HDFC Bank would not set any spending limit for its cardholders, customers can, on their own, define their credit limit, said Pralay Mondal, country head (retail assets and credit cards).

HDFC Bank, which launched its first credit card in 2003, is currently the largest issuer of credit cards in India. The bank currently accounts for 5.05 million credit card customers. The book value of the cards business is estimated at around Rs 5,000 crore. This is about five-eight per cent of the bank's total retail assets.

Puri said the bank has been growing its credit card business aggressively, adding 80,000 new credit cards every month. The high net worth individuals currently account for eight-nine per cent of the bank's client base of 22 million. India's high net worth individual population grew 20.8 per cent to 153,000 in 2010, according to the World Wealth Report by Merrill Lynch Global Wealth Management and Capgemini.

The number of outstanding credit cards in the country shrunk to 17.60 million in May from 17.70 million in the previous month. However, credit card spends have increased to Rs 7,881 crore from Rs 7,055 crore during this period. (BS)