HDFC Bank was facing technical problems for the last few years. In December 2020, due to technical glitches, the Reserve Bank had banned the bank from introducing new credit cards or new digital products.
HDFC Bank is aiming to regain its market share in the credit card market in the next one year. The Reserve Bank of India (RBI) has recently lifted the ban on issuing new credit cards on the largest private sector bank. The largest private sector bank in terms of assets has been allowed by the Reserve Bank of India to issue new credit cards again last week after nearly eight months.Also Read: LIC Bima Jyoti: Key features, benefits, all you need to know about the new policy
Let us tell you that after the continuous hiccups on the technical front, the central bank had banned the issuance of new credit cards of HDFC Bank in December 2020. Parag Rao, Group Head, Payment and Consumer Finance, Digital Banking and IT, HDFC Bank said that the bank is re-entering this market. In such a situation, he has set some goals for himself.Also Read: National Monetisation Pipeline Programme NPP to be presented by Finance Minister Nirmala Sitharaman
Will achieve 3 lakh credit card sales figures in 3 months
Rao said that our first target is to take the sales of new credit cards to 3 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 5 lakhs. “In three-four quarters from now, we will be able to achieve our credit card share in numbers.Also Read: Know New Rules related to air bag and Air bag mandatory for every car check here all details
Rao said the bank lost market share in terms of number of cards during the ban, but it encouraged customers to spend. In this sense, it was able to maintain its market share.
Market share reduced to less than 25% due to ban
According to the data, the bank’s market share in terms of number of cards declined by 2 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.
