There has been an enormous increase in the quantity of credit score playing cards issued with the aid of banks in the ultimate 365 days. According to National Payments Corporation of India (NPCI) records, the variety of great credit scorecards went up 24.87 in step with a cent at four. Forty-two crore in December 2018, as compared to three.54 crore an ultimate year.
The upward thrust in the wide variety and value of transactions during the last years proves the segment is growing steadily – the spurt is being driven through top personal lenders and SBI Cards. ICICI Bank has constantly been increasing its unsecured credit scorecard portfolio, focusing on move-promoting to its present customers. In the last zone, it also launched a co-branded credit card affiliated with Amazon Pay. SBI Cards has now reached seven million card-in-force milestones.
Its increase has been pushed by releasing unique cards along with the SBI Doctors Card and Karnak Unnati SBI card for agriculturalists. For Axis Bank, the 36, in keeping with the cent boom in the credit scorecard portfolio, was one of the overall retail segment growth drivers at 20 percent.
A safe guess?
Is this boom sustainable and safe at a time when banks are already grappling with NPAs? There are exceptional views. Last year, the RBI had cautioned banks against better dependence on the retail segment, which includes credit playing cards and personal loans.
HDFC Bank’s current growth in consequences on an overdue charge of card dues may also hint at the preventive measures being taken up, stated a senior govt of a public region bank. While playing cards has been in style since the mid-eighties, the market witnessed a quantum soar handiest from the early 1990s.
The general variety of cards issued through forty-two banks and fantastic multiplied from 2.69 crores as of December 2003 to 4.33 crores as of December 2004. Then, there was a downward spiral, while banks confronted many challenges in convalescing dues and, as a result, led to the decline in credit card enterprise.
Again, from 2014, banks commenced seeing the enlargement of card agencies. But now matters are specific as any mortgage or card is being best given on the premise of Credit Bureau records, which acts as an inbuilt mechanism,” stated a govt with a non-public financial institution. A few of the big players within the phase.
