Citibank has reduced the interest rate for its Titanium credit card holders to 18 per cent per annum from September-February, 2012 billing statement. Normally, Citibank charges 3.15—3.25 per cent per month interest on credit cards. ICICI Bank is gifting an iPad2 to customers with a single transaction above Rs 10,000 on credit card for shopping, jewellery or booking a vacation online. ICICI Bank will give 372 iPads by the end of October.

On the same lines, new customers that sign up for a credit card will get a complimentary Satya Paul from ICICI Bank. The bank is also waiving off 50 per cent of Rs 5,000 annual fee and giving six flights free on its Kingfisher World ICICI Credit Card.

Sumit Bali, executive vice-president (retail assets) at Kotak Bank, said, “The festive season, starting September till December, is the peak season for the credit card industry. People plan holidays, buy gold, jewellery, consumer durables and shop a lot. These are high spend months and banks want to capitalise on the opportunities by encouraging customers to spend.”

Kotak Bank is giving discounts ranging from Rs 3,000—10,000 on British Airways tickets,

Rs 250 off on the purchase of books worth Rs 2,000 and above of McGraw-Hill, besides discounts and cash backs on Tantra t-shirts, Fastrack, Disney store, and Cinemax movie tickets.

“Credit cards in the last few years were aggressively distributed, as a result profits took a hit. Banks have learnt from the past mistakes and are moving to value approach rather than topline approach,” said Bali.

On ICICI Bank Coral Credit Card, one movie ticket is given free for every movie ticket bought. In addition, 15 per cent of discount is given on select restaurants, along with a complimentary Jet Airways ticket. On an ICICI Bank HPCL Credit Card, Rs 500 cash back would be given to customers, who spend Rs 5000 in the first 60 days of signing the card.

Similarly, Citibank is also offering customers the option to pay for Dell laptop, desktop, Nokia mobile phones, Sony LCD/LEDs at Sony stores, travel plans from Yatra.com in three to six equated monthly instalments (EMIs). The bank is also offering 20 per cent discount in 1,000 restaurants, Rs 250 cash back on a spend of Rs 2,500, free movie tickets on the Citibank credit card.

HSBC India is offering various discounts on online shopping done through credit cards such as Rs 150 off on books from Crossword, 10 per cent discount on Qatar Airways , Indigo, Tantra t-shirts and movie tickets.

HSBC Bank, in association with Pinpoint India, has also launched ‘extra point’ a programme for premium cardholders involving leading merchants such as Croma, Vodafone, More supermarkets, The Leela Palaces and Hotels, Welspun, Wills Lifestyle, Marriott Hotels, Cox & Kings and Jimmy Choo, among many others. Customers will also have a wide range of redemption options from that of HSBC rewards and extra points. Some of these include Vodafone bill credits, a wide range of shopping and dining vouchers, travel and accommodation, charity donations and concierge rewards.

Most of the offers on credit card end this month or are valid till December.

Smaller player like Dhanlaxmi Bank is offering 20 per cent off on the total spends or assured prizes if a customer buys goods worth a certain amount from his credit card.

According to a data released by the Reserve Bank of India (RBI), transactions using credit card during the April-August period of this financial year stood at Rs 37,678.25 crore against Rs 29,024.75 crore in the same period of 2010-11.