Private sector lender Federal Bank is aiming to make an entry into the credit card business of India as a step to expand its reach and presence in the Indian banking domain.

To begin with, the bank plans only to market the cards while the backend mechanism of the card would be outsourced.

Commenting on the aims of the bank, executive director of the bank, Mr Abraham Chacko said, "We have sensed a need to launch a credit card."

"It is at the preliminary stage, and we are internally discussing the proposal. We are connecting some external parties to gain knowledge about outsourcing the product in terms of pricing, customers and other business details," he said.

The present debit card customer base of the bank stands at around Rs 16 lakh and 55% of the total business of the bank comprises of the retail segment.