After a complaint of a technical glitch on HDFC Bank’s online platform, the RBI banned it from issuing new credit cards. ICICI Bank, SBI Card and Axis are getting the benefit of this.
HDFC Bank to Release New Cards
ICICI Bank is at the forefront of taking advantage of this situation. ICICI Bank spent ten per cent more on the new credit card in January 2021 than in December. There may be an increase of three per cent in newly issued cards from ICICI. At the same time, its share in the entire credit card market increased by 1.5 per cent.
ICICI Bank had issued one crore cards till January. Analysts say that ICICI Bank would have benefited the most from the ban on issuing cards on HDFC. It is the card segment itself, which is growing the most. Because the pace of mortgage base loan has decreased. SBI card has also increased by one basis point.
SBI and Axis Bank also benefit
The card issued by Axis Bank has also increased. Its card base has increased to 69 lakhs. At the same time, an increase has also been registered in SBI card. In December, the number of cards issued by it was 1.14 crore, but this number increased to 1.16 crore in January.
Axis has got the benefit of this. HDFC Bank’s share in the payment market is 35 to 40 per cent. Credit cards account for 25 per cent of this. At the time of pre-Kovid, Axis HDFC Bank used to issue two lakh credit cards every month. After repeated problems in HDFC Bank’s online payment service, the RBI stopped giving new cards.