SBI, ICICI benefitted by ban on HDFC's new credit card issuances

New Delhi: This all starts when the HDFC Bank faces digital glitches not only once but many times, due to which the bank faces a very major issue and asked to stop credit card issuances. Earlier in December 2020 RBI imposed a ban on the new issuance or launch of card facility.

 

And, this is not the first time when HDFC bank is experiencing downtime in its digital platform a month ago two times happens when the bank faces the same issues, and two years back there were two major outrages due to which bank and customers both suffer.

 

This is the obvious reason behind the shifting of the customers and lenders choosing other major banks which includes State Bank of India, Axis Bank, and ICICI Bank.

These banks are seeing a rapid boom in the market and a high strike in the credit card business.

 

The private lender ICICI Bank is one of the major banks that gained the most credit card business with a 10% sequential rise in January and its fresh cards grew nearly 3% In the overall tally, it gained a 1.5% market share. The private lender ended January with 10.1 million credit cards and spends worth Rs 10,230 crore as compared to 9.9 million cards and Rs 9,309 crore spends in December, respectively, the Economic Times mentioned in a report citing regulatory data.

 

According to RBI data SBI Cards, gained its market share by nearly 1%, with total cards increasing to 11.6 million at the end of January against 11.4 million at the end of December. Axis Bank also saw its card base grow to more than 6.9 million against a little over 6.8 million in December.

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