After a gap of almost four years, ICICI Bank and Hong Kong and Shanghai
Banking Corporation (HSBC) have started expanding their credit card base. The
duo, once the most aggressive credit card players in the country, have not been
growing this business since 2008-09 as uncertain economic environment increased
the risk of delinquencies. It appears that the two banks are now convinced that
increasing their credit card portfolios will not lead to significant erosion in
asset quality.
For ICICI Bank, the number of outstanding credit cards at the end of January, 2013 was 2.84 million compared to 2.82 million in December, 2012 and 2.77 million in November, 2012. HSBC's credit card base in India increased to 502,757 at the end of January, 2013 from 501,631 and 501,229 in the previous two months.
"ICICI Bank has been among the leading banks in the credit and debit card business. With the new 'Gemstone' collection of credit cards, the bank offers a compelling product proposition to all segments of credit card customers. The bank has increased its focus on cross-selling of credit cards to its existing customers and most of the growth in card numbers is being generated from this segment. The bank continues to build a portfolio with a strong focus on credit quality," the bank said. "We continue to grow our credit card business in a cautious and calibrated manner," an official of HSBC in India said. ICICI Bank did not respond to the mail sent by Business Standard.
The credit card base of ICICI Bank and HSBC have been declining every month between April, 2011 and October, 2012 the Reserve Bank of India's (RBI) data showed. While the data for the previous period was not immediately available, according to bankers both the banks' credit card portfolios have been shrinking month-on-month since 2008-09 due to rise in delinquency rate. Both ICICI Bank and HSBC had earlier said that they were consciously trimming their credit card portfolios to cut losses. However, the formation of credit information bureaus has allowed banks to get information on borrowers' credit history. "The quality of credit bureaus in India has improved significantly. Banks' can underwrite customers far more intelligently than ever before. Also, I don't think any bank will commit the same mistakes they made last time. The growth now is going to be measured and researched, without compromising the credit quality," a senior executive in charge of retail banking business of a foreign bank in India said.
For ICICI Bank, the number of outstanding credit cards at the end of January, 2013 was 2.84 million compared to 2.82 million in December, 2012 and 2.77 million in November, 2012. HSBC's credit card base in India increased to 502,757 at the end of January, 2013 from 501,631 and 501,229 in the previous two months.
"ICICI Bank has been among the leading banks in the credit and debit card business. With the new 'Gemstone' collection of credit cards, the bank offers a compelling product proposition to all segments of credit card customers. The bank has increased its focus on cross-selling of credit cards to its existing customers and most of the growth in card numbers is being generated from this segment. The bank continues to build a portfolio with a strong focus on credit quality," the bank said. "We continue to grow our credit card business in a cautious and calibrated manner," an official of HSBC in India said. ICICI Bank did not respond to the mail sent by Business Standard.
The credit card base of ICICI Bank and HSBC have been declining every month between April, 2011 and October, 2012 the Reserve Bank of India's (RBI) data showed. While the data for the previous period was not immediately available, according to bankers both the banks' credit card portfolios have been shrinking month-on-month since 2008-09 due to rise in delinquency rate. Both ICICI Bank and HSBC had earlier said that they were consciously trimming their credit card portfolios to cut losses. However, the formation of credit information bureaus has allowed banks to get information on borrowers' credit history. "The quality of credit bureaus in India has improved significantly. Banks' can underwrite customers far more intelligently than ever before. Also, I don't think any bank will commit the same mistakes they made last time. The growth now is going to be measured and researched, without compromising the credit quality," a senior executive in charge of retail banking business of a foreign bank in India said.
HDFC Bank continues to remain the largest player in the Indian credit
card market with a base of 6.26 million cards at the end of January, 2013.
ICICI Bank occupies the second position followed by State Bank of India (SBI),
Citibank and Standard Chartered Bank.
|
|
Number ofoutstanding credit cards
|
|
|
Month
|
ICICI Bank
|
HSBC
|
|
January 2013
|
2,840,802
|
502,757
|
|
Decemberr 2012
|
2,824,532
|
501,631
|
|
November 2012
|
2,771,657
|
501,229
|
|
October 2012
|
2,806,743
|
501,378
|
|
September 2012
|
2,793,705
|
500,835
|
|
August 2012
|
2,799,271
|
506,863
|
|
July 2012
|
2,802,935
|
572,392
|
|
June 2012
|
2,821,023
|
579,186
|
|
May 2012
|
2,822,328
|
602,853
|
|
April 2012
|
2,833,357
|
613,877
|
|
March 2012
|
2,844,705
|
736,764
|
|
February2012
|
2,860,560
|
745,899
|
|
January2012
|
2,868,629
|
762,597
|
|
December 2011
|
2,892,502
|
766,835
|
|
November 2011
|
2,956,176
|
779,423
|
|
October 201
|
2,996,874
|
787,720
|
|
September 2011
|
3,025,176
|
789,268
|
|
August 2011
|
3,038,046
|
793,204
|
|
July 2011
|
3,120,228
|
865,697
|
|
June 2011
|
3,194,674
|
887,625
|
|
May 2011
|
3,266,549
|
899,323
|
|
April 2011
|
3,361,684
|
910,559
|
http://www.business-standard.com/article/finance/icici-bank-hsbc-starts-expanding-credit-card-base-113032500245_1.html
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