With slowdown becoming intense and delinquencies rising with time, state-run Punjab National Bank (PNB) adopts a cautious approach while issuing its new global credit card.

Currently the bank is limiting the issue and aiming to reach out to its existing account holders. The bank says that issuance to its own account holders would enable them to access the credit worthiness of the person.

PNB's Chief General Manager who is in charge credit card initiative, Ranjan Dhawan said, "We are primarily aiming at our own customers for issuance of cards. It would help us to better assess the person's financials and thereby limit the possible defaults at a later date. It would be even better if the person has a salary account with us."

He however confirmed that the bank has not imposed a ban on the issuance of credit card to the non-account holders but they will be cautious. "We will issue cards to those who do not hold an account with us but on a very selective basis. With the model we have put in place, we do not foresee any major problem of defaults," he said.

PNB launched the global credit card in the beginning of March 2009 and since it has been slow in the card issue. "We are seeing a healthy response to our credit card and have already issued nearly 10,000 cards. We have decided to step up our marketing efforts to capture a larger share of the market. Within 12 months, we hope to issue 2,00,000 cards," he added.

Meanwhile the bank is also planning to co-brand the card and is in talks with some of the companies for the same. "We are talking to prospective partners for issuing co-branded cards. We hope to finalize deals with one large company and another airline for this." he said.

The global credit card by the PNB offers free credit period of 20-50 days and has zero joining, renewal, annual fee or fuel surcharge. The card is accepted at almost all merchant establishments and Visa ATMs across the national.