HDFC Bank hopes to return with a ‘bang’ and regain lost market share

Laying out future plans, as soon as the embargo is lifted, he mentioned the financial institution had a way more healthful technique.

HDFC Bank expects to regain the misplaced market share and make a powerful comeback as soon as the regulator lifts the embargo on issuing new bank cards, Parag Rao- head of shopper finance, digital banking and data know-how mentioned on Wednesday.

With out sharing particulars over when he anticipated the ban to be lifted, Rao mentioned inside three-four months of the ban getting lifted, one ought to count on incremental market share again to the pre-ban ranges. The financial institution has been in fixed dialogue with RBI ever for the reason that ban was imposed, and has upgraded its programs as per the indications from the regulator, Rao mentioned. He added that it had now introduced a plan that focuses on the rapid, short-term, mid-term and long-term to the central financial institution.

In response to the RBI knowledge, within the interval between December 2020 and April 2021, HDFC Financial institution’s bank card base contracted by 3.89 lakh. Whereas ICICI Bank’s bank card portfolio elevated by 8.15 lakh, SBI Card and Axis Bank added 4.37 lakh and three.29 lakh playing cards, respectively. Nevertheless, HDFC Financial institution continues to have the biggest buyer base within the phase with 1.49 crore excellent bank cards as on April 30, 2021.

In December, RBI a had stopped HDFC Financial institution from issuing contemporary bank cards and asserting new digital initiatives following a number of outages the financial institution witnessed over the previous few years. The regulator additionally referred to as for a third-party audit of the financial institution’s IT infrastructure.

“We have now used the final six month interval since December to introspect, reinvigorate and re-engineer for the long run. We’ll use tech and digital to assist us proceed being dominant within the house and can get again to the market with a bang. We have now the whole system prepared and charged up,” mentioned Parag Rao, group head – funds, shopper finance, digital banking and IT, HDFC Financial institution.

Laying out future plans, as soon as the embargo is lifted, he mentioned the financial institution had a way more healthful technique. “It’s not solely to regain our (bank cards) quantity and worth market share but additionally to forge new partnerships, construct extra scale, introduce newer services and proceed on our journey of being the dominant funds financial institution participant within the house,” he mentioned.

Rao mentioned the financial institution had been utilizing the six-month interval to work on its know-how and digital processes and likewise had a base of pre-approved clients, who will probably be supplied bank cards when the embargo is lifted.