HDFC Bank’s loss is ICICI Bank’s gain? HOW? RBI restrictions on issuance of new credit cards helping rivals of the largest private bank; Know FULL DETAILS
Devanshi Asher tells Zee Business Managing Editor Anil Singhvi that the Reserve Bank of India (RBI) had in December 2020 imposed restrictions on the issuance of new credit cards by HDFC Bank in the wake of digitisation related problems in its credit card services. Those restrictions are still in place
HDFC Bank’s loss is ICICI Bank’s gain? Want to know how? Zee Business’ Devanshi Asher has this interesting report. HDFC Bank and ICICI Bank are two private heavy weight banks and any development on the business has the potential to trigger stock movement.
Asher tells Zee Business Managing Editor Anil Singhvi that the Reserve Bank of India (RBI) had in December 2020 imposed restrictions on the issuance of new credit cards by HDFC Bank in the wake of digitisation related problems in its credit card services. Those restrictions are still in place.
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ICICI bank has been able to lap-up at least 10 lakh new customers over the past 9 months, Asher said.
The market share of HDFC Bank has been on a constant decline during this period, she added. The largest private sector lender also was the largest issuer of the credit cards in the country.
Till May 2021, HDFC Bank has suffered losses of around 5.3 lakh new credit cards because of the ongoing restrictions.
ICICI Bank credit cards have also gained from its tie-up with Amazon. There market share has been picking up swiftly.
Other banks are also gaining from this and have been able to grow their market share, she further said. SBI Cards has issued around 6.6 lakh new cards, while Axis Bank and RBL Bank have issued 2.4 lakh and 1.8 lakh cards respectively.
As per the estimates, around 11 cr new cards were issued during this time, she further said.
Over the last 2-3 months ICICI Bank has been the biggest gainer while SBI Card – issued by SBI Cards & Payment Services Ltd - has also been gaining significantly.
Market Guru also said that it was now quite apparent that the ICICI Bank has gained from the RBI restrictions on the HDFC Bank.
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HDFC बैंक के नुकसान से ICICI बैंक को फायदा कैसे?
— Zee Business (@ZeeBusiness) July 13, 2021
Stocks of HDFC Bank were up over 1 per cent on the NSE on Tuesday and were trading at Rs 1502.55 at 1:40 pm. Meanwhile, ICICI Bank shares were up 2.4 per cent and were trading at Rs 664.50 around this time.
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