HDFC`s comeback, aims to add 5 lakh new credit cards per month
The new and enhanced suite of credit card products will have something for everyone from the mass market to the ultra-premium segments.
HDFC Bank/PTI Image
Mumbai: India’s largest credit card issuer, HDFC Bank on Monday announced that the bank is aiming to add five lakh new credit cards to its portfolio every month beginning February 2022. This will enable it to regain its market share and cement its leadership position in the credit card issuing business in the next 9 to 12 months.
According to HDFC, the Bank has over 20 initiatives which will hit the market in the next 6 to 9 months to drive this growth. These include the launch of new co-branded cards with the who’s who of Corporate India spanning pharma, travel, FMCG, hospitality, telecom and fintech. The bank has also revamped its existing range of cards over the past 9 months and is also ready with strategic partnerships with new companies.
The new and enhanced suite of credit card products will have something for everyone from the mass market to the ultra-premium segments. There will be tailored products for customers to meet their evolving needs, HDFC mentioned.
"The last few months have been spent in readying ourselves for the future. When the restrictions from the regulator were in place, we utilised the time to chalk out a new strategy. With our new offerings as well as our existing suite of cards, we are confident of meeting the needs of our customers and ‘come back with a bang’.” said Mr Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.
According to RBI data:
- HDFC Bank Credit cards spends are 1.5 times higher than the nearest competitor
- HDFC Bank has 1.2 times higher number of cards than the nearest competitor
- HDFC Bank Credit spend per card is the highest among Top 6 banks (in terms of CIF & spends)
- The bank also has a dominant position in the merchant acquiring space.
- As per RBI data, HDFC Bank consistently has the highest overall market share in merchant acquiring business. As of June 2021 the bank had 47.9% of the total market share.
- The best book quality as per franchisee data - the highest through-put per merchant
- Its SmartHub platform is an integrated banking and payments range tailor-made for all merchant categories and size
HDFC Bank has about 3.67 crore debit cards, 1.48 crore credit cards and about 21.34 lakh acceptance points, making it among the largest facilitators of cashless payments in the country. With over 5.1 crore credit cards, debit cards and prepaid cards addressing every market segment, every third rupee spent on cards in India happens on HDFC Bank cards.
It has played a significant role over the years in spurring India's consumption story. The coming festive season will help it play this role better at a time when it is perhaps needed as never before.
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