After the ban removed from HDFC Bank, the bank has set a target to issue new credit cards. The Reserve Bank of India has recently lifted the ban on issuing new credit cards on the largest private sector bank.
New Delhi: After the ban removed from HDFC Bank, the bank has set a target to issue new credit cards. The company is aiming to regain its market share in the credit card market in the next one year. The Reserve Bank of India has recently lifted the ban on issuing new credit cards on the largest private sector bank.
The largest private sector bank by assets was allowed by the Reserve Bank of India to issue new credit cards again last week after nearly eight months. The central bank had banned HDFC Bank from issuing new credit cards after continuing hiccups on the technology front.
Then the market down the bank into
the bank payments and consumer finance, digital banking group’s IT major Parag Rao told reporters that the bank has gone into this market. In such a situation, he has set some goals for himself. Rao said that our first target is to take the sales of new credit cards to three lakhs. The bank was achieving this figure before the ban in November 2020. He said that the bank will achieve this figure in three months.
He said that after two quarters of this, we aim to take the credit card sales on a monthly basis to five lakhs. “We will be able to achieve our credit card share in numbers in three-four quarters from now.”
Bank’s share reduced due to ban
Rao said the bank lost market share in terms of number of cards during the ban but encouraged customers to spend In this sense, it was able to maintain its market share. According to the data, the bank’s market share in terms of number of cards declined by two percentage points to less than 25 per cent due to the ban.
ICICI Bank and SBI Cards took advantage of this opportunity and bridged the market share gap. Rao said the credit card spend in its card portfolio grew 60 per cent in the April-June quarter.
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