MUMBAI, Jan. 18 -- IDFC First Bank is taking a different approach to the credit card business, where it is a late entrant. Typically, issuers have looked at credit cards as a convenient payment model, but IDFC First Bank is treating it like a credit instrument, as it happens in developed countries.

Mint spoke to B Madhivanan, chief operating officer, IDFC First Bank, on the lender's business plans. Edited excerpts:

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How do you manage to keep interest rate low across all cards when no other issuer has done so? Is it to cause a disruption in the business?

We use proprietary algorithm to evaluate the credit profile of an applicant. The higher the score, the lower the interest rate or annual pe...