Banks are again targeting to push up credit card sales and unsecured loans portfolio by mainly focusing on customers without an existing relationship with the bank.
Banks had stopped these practices after the Lehman Brothers crisis. Banks had a huge number of defaulters and so the had to stop such practices. But about a year back the banks again slowly resumed such practices.
Ms Rajashree Nambiar, General Manager & head of retail banking products, personal & preferred segment (South Asia) of Standard Chartered said, "Yes, we do offer credit cards and unsecured loans to customers not having an existing relationship. We believe we have a robust risk assessment framework ably supported by a maturing credit bureau, to underwrite such customers. We also use data from strategic alliances and partners to supplement the traditional risk management framework, wherever applicable".
Managing Director and head of cards and unsecured loans, Citi India, Mr. Muge Yuzak said, "We are targeting customers outside our bank to maintain our market leadership position and growth momentum. The reason why this market went through pain in 2008 was not just because consumers did not use credit responsibly but also because the overall credit framework to provide banks with access to the exposure of individuals at an industry level was not robust. This resulted in loans being provided way above the ability of customers to repay".
But there are still some banks like HSBC Bank, who are still cautious in few segments.
No comments:
Post a Comment