Whalesbook
IndusInd Bank is reviewing its credit card operations, aiming to reverse a recent decline in its loan book. Chief Executive Rajiv Anand said the bank plans to expand its credit card portfolio soon, noting customer engagement remains strong despite challenges.
Strategy for Card Growth
Anand said the bank sees growth in both new card issuances and the overall book. This follows a period where credit card loans contracted 12 percent year-on-year to Rs 9,751 crore in the March quarter. Sequentially, loans dropped 5 percent from Rs 10,264 crore in the prior quarter.
Market Challenges and RBI Rules
IndusInd's strategy shift comes as the credit card market faces a slowdown. Stricter RBI rules, financial firms' caution on unsecured lending, and general wariness around these products shape the environment. Despite these challenges, Anand noted that card spending has continued to rise, showing customers are still actively using cards.
Financial Boost from Q4 Results
The move follows IndusInd Bank's fourth-quarter results, which showed a profit of Rs 533 crore, recovering from a Rs 2,236 crore loss in the same period last year. The bank improved due to reduced provisioning for bad loans and better asset quality. IndusInd plans to use this stronger financial position to boost growth in its credit card segment.