|Chennai||Rs. 28610.00 (-0.14%)|
|Mumbai||Rs. 29790.00 (1.43%)|
|Delhi||Rs. 28000.00 (-1.93%)|
|Kolkata||Rs. 29360.00 (0.44%)|
|Kerala||Rs. 27650.00 (0.91%)|
|Bangalore||Rs. 28250.00 (0%)|
|Hyderabad||Rs. 28650.00 (0.74%)|
Private sector lenders witnessed robust growth in credit cards and personal loan businesses in FY14, which helped them boost top line amid sluggish corporate credit demand in a slowing economy.
ICICI Bank, India's largest private sector lender, witnessed 141.6 per cent growth in personal loan disbursement in the past financial year, according to a report by Emkay Global Financial Services. The lender also saw healthy growth of 20.8 per cent in credit card dues, the report noted.
Similarly, Axis Bank's personal loan business grew 49.8 per cent last year, while the credit card business expanded 31.1 per cent.
The number of cards outstanding has also gone up in the past year. While the Reserve Bank of India's (RBI) latest data is till January, the increasing trend is clearly visible.
For example, ICICI Bank's number of outstanding credit card at the end of January 2014 was 3,180,401, up 12 per cent from 2,840,802 a year ago. Similarly, Axis Bank recorded 28 per cent growth in the number of outstanding cards from 1,036,206 in January 2013 to 1,324,790 in January 2014. The exception to this rule was HDFC Bank, which had been weeding out its inactive cards in the previous quarters.
The aggregate amount of transactions done via ATM and POS (point-of-sale) has also seen an uptick. While ICICI bank's aggregate transaction amount has gone up 31 per cent, Axis Bank has recorded a 86 per cent growth in the transaction amount.
The growth in credit card business has also encouraged some lenders to enter the business. For instance, Federal Bank has said it might join the credit card business. However, it is not only private and foreign banks but even public-sector banks that have been trying to improve their share in the credit card business.
According to a Worldline India report, a player in the payments and transactional services pointed out in a report: "Private sector banks continue to be the largest issuers, with a 54 per cent share of the credit card base. After RBI's EMV (Euro pay MasterCard Visa) mandate, there was an uptick in issuance from the public-sector banks, as a result of which their share has grown to 20 per cent (in FY14) from 18 last year (FY13)."
In fact, the credit card base has crossed the 20-million mark by the end of the last financial year, the Worldline report noted.