Credit card spends grow at slow pace as Covid second wave hits sentiment
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Synopsis
Asset quality from the unsecured segment a big worry; banks have curtailed credit limits and also cut back on new customer additions
Agencies
Mumbai: Credit card spends in the country grew by only 7.8% in the year ended March 2021, down from a jump of 22.5% in FY20, a sign that discretionary spending continues to remain elusive.
Individual banks indicated spend growth has fallen further in April and May.
“We have seen a significant decline in spends in the last 45 days, largely due to the spread of the virus and strict local lockdowns enforced across states,” the retail head of a private sector lender said. “The worrying factor is that the quality of good assets has taken a hit in this (credit card) segment, and we will go slow on onboarding new clients.”
Credit card or loan approval chances higher now than this time last year
The number of 0% interest balance transfer cards available has also increased.
14:59, 27 MAY 2021
More people are now eligible for credit cards and loans than this time last year (Image: Getty Images)
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