Hdfc Bank aims to regain lost market share in 1 year after Rbi lifts credit card ban


HDFC Bank plans to regain market share in number of cards over the next year, a senior official said on Monday. The largest private sector lender by assets was cleared to issue new credit cards by the RBI last week, more than eight months after being banned from doing so over concerns over repeated technology outages.

Parag Rao, its group leader for payments and consumer credit, digital banking and IT, told reporters the bank has set milestones as it seeks to re-enter the market.

The first is to make monthly sales of new credit cards at 3 lakh, the number just before the November 2020 ban, Rao said, adding that the same will be achieved in three months. Two quarters later, it aims to increase monthly sales of new cards to 5 lakh per month, Rao said, adding that in three to four quarters, he expects to regain market share in number of cards.

Rao added that during the ban, the bank lost its market share in number of cards but was able to maintain the market share on initiatives taken to encourage users to spend.

It can be noted that according to the data, the bank’s market share in number of cards has fallen by around 2 percentage points to less than 25 percent, as smaller competitors, notably ICICI Bank and SBI Cards, have. seized the opportunity to close the gap. After the ban was lifted, HDFC Bank had spoken of coming back in force.
Rao said credit card spending was 60% higher in the April-June quarter on his card wallet. The bank will depend on its internal set of customers to increase the number of cards and also plans to partner with key players like Paytm announced earlier today to increase its supply. Rao also said that the conservative approach to the credit front will continue for the bank, even as it aggressively embarks on finding new businesses.

The bank certificate traded 0.57% at Rs 1,522.95 each on the BSE at 1318 hours against gains of 0.43% on the benchmark.

(Edited by : Priyanka Deshpande)

Source link

Leave A Reply

Your email address will not be published.