HDFC Financial institution, the most important issuer of bank cards within the nation, has grabbed greater than 50 per cent market share when it comes to guide dimension – whole internet receivables that prospects owe to the financial institution.
“Our bank card guide dimension in November 2015 crossed Rs 20,000 crore mark, representing a 52 per cent market share. The entire excellent in the identical month for the trade was round Rs 39,000 crore,” stated Parag Rao, head (playing cards, service provider buying enterprise & advertising and marketing), HDFC Financial institution.
In keeping with Reserve Financial institution of India (RBI) information, the lender had 6.72 million excellent playing cards in October, the very best within the trade. Its closest competitor, ICICI Financial institution, had about 3.43 million playing cards. Regardless that the central financial institution doesn’t publish bank card guide dimension information, it mentions the quantity of transactions carried on the playing cards. In October, the quantity of transactions carried out on HDFC Financial institution’s bank cards was Rs 6,820 crore. For the whole trade, spending in October was Rs 21,908 crore.
HDFC Financial institution has now turned extra aggressive in its bank cards enterprise. “Until October-November in 2014, we have been including about 75,000-80,000 bank cards a month. In 2015, we now have doubled it and supply about 180,000 bank cards a month,” stated Rao.
Nevertheless, HDFC bank cards buyer base continues to be dominated by the financial institution’s personal prospects. “Even whereas sourcing, we make sure that 75-80 per cent of the brand new prospects are financial institution prospects and the non-bank prospects proceed to be a a lot smaller portion. We have not modified that blend,” Rao added.
Consultants say the expansion in bank cards is being fuelled by the general progress within the economic system and the federal government’s give attention to cashless transactions. The rise in e-commerce transactions has additionally fuelled the expansion of plastic cash.
Lenders have additionally been specializing in analytics-driven advertising and marketing and tailored presents to draw prospects.
Final yr, after a niche of 5 years, the bank card base within the nation managed to cross the pre-Lehman disaster stage and is now properly above the 20-million mark. In keeping with RBI information, the variety of excellent bank cards on the finish of October 2015 was 22.88 million.