HDFC Bank issues over 400K credit cards as embargo lifts
On Wednesday, HDFC Bank also relaunched three credit cards—Millennia, MoneyBack Plus and Freedom
MUMBAI : HDFC Bank Ltd has issued over 400,000 credit cards since the Reserve Bank of India (RBI) lifted its embargo in August, said Parag Rao, group head for payments, consumer finance, digital banking and IT.
In December last year, HDFC Bank was ordered to halt launching new digital banking initiatives and freeze credit card issuance until the lender addressed lapses that led to a series of glitches. While it was allowed to issue credit cards from August, the central bank is yet to relax restrictions imposed on new digital launches.
Rao had said last month that HDFC Bank hit the milestone of sourcing 300,000 new cards every month in November last year and plans to match it in the next three months. Once that is achieved, the bank targets on-boarding 500,000 credit card customers every month over the next two quarters.
The 400,000 credit cards mentioned above were issued as of 21 September.
“Quite obviously, over the last nine months of embargo, we lost market share in numbers because we stopped sourcing. I do expect that over the next three to four quarters we will gain back our market share (in number of cards)," said Rao.
On Wednesday, the bank also relaunched three credit cards—Millennia, MoneyBack Plus, and Freedom. Rao explained that the bank has decided to look at ways it can reward existing customers, offering them improved products. “We looked at our existing 15 million customers and how we could show them much more value. We are thankful to these customers for being with the bank, and we would like to reward them by revamping and relaunching a couple of our products so that they get far more value than before," he said.
Rao said the bank picked up a set of three products for a relook and relaunch targeting 75% of the credit card market. The Freedom card is aimed at those who have just found employment and are used to online purchases—first-time jobseekers with credit limits of ₹15,000-50,000.
“These customers, we believe, deserve a much more sophisticated product and a credit card has always been an aspirational product," said Rao.
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