SBI Cards, one of the largest credit card issuers in the country is moving on to better times. The credit card major saw its non-performing assets (NPAs) fall to 9.77 per cent, as on September 30, against 10.5 per cent at the same time last year. Formerly, the NPA’s had reached an all time high of 16.28 per cent. The lender has also reduced its losses, which fell to Rs 91 crore as on September end, according to a release by Crisil.
A senior executive said, “We are definitely in a much healthier shape now and our delinquencies are lower than the industry average. More important, our default rates on new cards are very low. We only have to ramp up our card base. Already, we are issuing 50 per cent more cards per month now than we were in April.”
Other credit companies are also positive about the future A senior official of Standard Chartered bank had this to say, “There are signs the market may improve in the coming few quarters. Our NPAs have been well under control and we see the trend continuing. For the industry, issuances are likely to pick up six to nine months from now once we see sustainable improvement.” StanChart bank has 1.3 million credit cards in circulation at the moment.
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