HDFC Bank is looking at winning back the market share by several cards in the next year, a senior official said on Monday.
The largest private sector lender by assets was allowed to issue new credit cards by the RBI last week, over eight months after being banned from doing so due to concerns over repeated technological outages. Parag Rao, its group head for payments and consumer finance, digital banking and IT told reporters that the bank has set some milestones for itself as it seeks to re-enter the market.
The first is to achieve monthly new credit card sales to 3 lakh, the number right before the ban in November 2020, Rao said, adding that the same will be achieved in three months.
Two quarters after that, it aims to take the monthly new car sales to 5 lakh a month, Rao said, adding that in three to four quarters from now, it plans to regain the market share by several cards. Rao added that during the ban, the bank lost its market share by several cards but was able to maintain the market share on initiatives taken to prod users to spend.
It can be noted that as per data, the bank’s market share by several cards had come down by around 2 percentage points to under 25 percent, as smaller rivals including ICICI Bank and SBI Cards seized the opportunity to close the gap. After the lifting of the ban, HDFC Bank had spoken about coming back with a bang. Rao said spends on credit cards are 60 percent higher in the 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 as Paytm announced earlier in the day, to increase its sourcing. Rao also said that the conservative approach on the credit front will continue for the bank even as it goes aggressively on the new business sourcing. The bank scrip was trading 0.57 percent up at Rs 1,522.95 apiece on BSE at 1318 hrs as against gains of 0.43 percent on the benchmark.
