HDFC Bank is all set to increase its credit card sales to 5 lakh a month in next one year, a senior official told on Monday. The Reserve Bank of India (RBI) allowed the private sector lender to issue credit cards again last week, after a eight-month long ban. In December, 2020, the banking regulator barred India’s largest private sector lender from launching new digital banking initiatives. It also prohibited the bank from issuing new credit card mentioning the multiple technical glitches faced by the customers in HDFC Bank internet banking and mobile banking application.
Talking to reporters, Parag Rao, HDFC Bank head for payments and consumer finance, digital banking and IT, shared a glimpse of how India’s most valuable lender is planning to regain the market share by number of cards. HDFC Bank’s first aim is to increase the credit card sales to new 3 lakh a month in the next three months, Rao told, as mentioned by PTI. The bank is looking to raise its credit card sales to 5 lakh a month two quarters after that, Rao mentioned. In three to four quarters from now, HDFC Bank plans to regain the market share by number of cards, he further added.
HDFC Bank is by far the largest credit card issuer in the country. However, its credit card market share hit significantly due to ban. HDFC Bank’s card base dropped to 14.82 million in June, 2021 from 15.38 million in December, 2020. The ban has helped its rivals, most notably ICICI Bank and SBI Cards, to add new credit card customers. ICICI Bank gained over 11.6 lakh customers between the end of November 2020 and the end of May 2021.
“During the ban, the bank lost its market share by number of cards but was able to maintain the market share on initiatives taken to prod users to spend,” the bank added.
“We have got very aggressive plans to get back in the market with a big bang… You will rapidly see HDFC Bank not just regaining market share but also significantly increasing our spend market share,” Parag Rao told earlier.
Rao said spends on credit cards are 60 percent higher in April-June quarter on its card portfolio. The bank will depend on its internal set of customers to grow the number of cards and is also looking at partnering with key players like Paytm announced earlier in the day, to increase its sourcing.
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