Due to fears of default rates going up in the wake of high inflation and global financial troubles, banks and card issuers in India are slowing in issuing new credit cards. Industry professionals expect the the annual growth rate in the industry could slip to 20% by the end of FY09 from 35% being recorded over the last few years.

The ongoing credit crisis has prompted banks to take a cautious approach as far as lending is concerned. They are now increasingly looking at tapping the mid and high income group to ensure repayment.

India’s largest private sector lender ICICI Bank and British Airways have launched a co-branded credit card called ICICI Bank British Airways American Express Credit Card.

With complimentary membership to the British Airways Executive Club and attractive BA miles earned on everyday spending, the card will give new and existing members an opportunity to accelerate these earnings, the release said.

ICICI Bank’s Head (Cards Product Group) Sachin Khandelwal said: “ICICI Bank is committed to offering its cardholders value and privileges that are the best in the industry… this strategic partnership with British Airways will introduce cardholders to a superior flying experience with the airline as well as enjoying the benefits of the one world alliance.”