Credit card industry on the upswing

By | December 30, 2009

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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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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