HDFC Bank has issued over 400,000 credit cards as of September 21 after a ban imposed by RBI last December was lifted.
The ban which forbade HDFC Bank from issuing new cards and launching new digital banking initiatives was lifted in August.
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Background
The ban was imposed due to repeated instances of outages in the internet banking/mobile banking/payment utilities of the bank over the past 2 years.
After the ban, an audit of the bank’s IT infrastructure was conducted.
The audit report gave the approval to lift the embargo.
Making A Comeback
HDFC Bank now expects to hit 500,000 credit cards per month from February 2022.
Parag Rao, group head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank, says that the bank is looking to acquire new customers and enhance its current offerings.
It introduced the relaunch of 3 cards which have been reinvented- the Millennia, MoneyBack+ and Freedom cards.
The new variants will be launched in October.
Existing Freedom and Millennia card holders will also enjoy the new benefits.
Growth
It also plans to regain its position which had diminished due to the embargo.
It is targeting growth in the credit cards business from its alliances with a number of industrial sectors.
Before the embargo, the rate of open market customer acquisition was less than 20%.
That figure may now go up to 22-24% thanks to its upcoming initiatives.
What Next?
These initiatives include co-branded cards with corporate India spanning pharma, travel, FMCG, hospitality, telecom, and fintech.
Rao says that it crafted its strategy based on analysis of consumer behavior.
This includes studying the categories they spend on and their spending patterns.
The bank is gearing up to launch new products ahead of the festive season.
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