Kerala based Dhanlaxmi Bank has made its entry in to the ever expanding credit card business. The bank has launched two credit cards. It is targeting premium segment customers through its credit cards.

The bank has set foot into the retail assets segment by launching a novel pay by transaction' mode credit cards. Under this mode, instead of a monthly billing cycle the interest free credit period is considered for individual transactions from the day of transactions. The customer gets a 45 day interest free period from the date of every transaction.

Currently, all credit card statements are generated according to the billing cycle and the payment to be made is calculated on the basis of summation of all the transactions made during the period and hence the average interest-free credit period gets reduced. The new model considers the interest-free credit period every individual transaction from the day of purchase. The customer thus enjoys a 45-day interest-free grace period, which gives the customer the flexibility to decide their own re-payment cycles. A separate bill is generated after each transaction and sent to the customer's mailbox thus giving him the option to make the payment within 45 days from the date of transaction.

Speaking about the card on its launch, Amitabh Chaturvedi, MD and CEO, said that retail assets are an important element of the overall growth strategy of the bank and that the bank has intention of launching more innovative customer focused products in the upcoming financial year.

"This year, we will be focusing on our retail business. The retail credit to GDP (gross domestic product) is growing at 10 per cent in India compared with 37 per cent in Malaysia and 59 per cent in Taiwan," he said.