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May 11, 2022

India’s Axis Bank looking to expand credit card business

Indian private lender Axis Bank is looking to scale up its credit card business, Moneycontrol has reported citing a senior bank official. 

The official added that the slippage ratio of the bank’s credit card portfolio has been under control despite the impact of the Covid-19 pandemic. 

“What we have seen is the impact of Covid waves one and two. But since then, whether you track it by entry rates (customers going delinquent for the first time) or by early delinquency of new bookings, both of these look very much under control,” Axis Bank president and head of cards and payments Sanjeev Moghe was quoted by the publication as saying. 

“We are confident that we can keep expanding scale without necessarily adding to incremental risk from here on. The book is very clean right now,” Moghe added.

Moghe said that the lender is positive that its outstanding credit cards will be higher than what they were in the previous financial year.

Axis bank, which had issued around 2.7 million credit cards in the financial year 2022, is in talks to launch co-branded credit cards.  

It is also working to expand its presence in the merchant acquiring space. 

“We are looking at some co-branded credit cards. We launched one with Airtel in March, we have (another) one coming up this week,” the official said.

Regarding the possibility of non-banking financial companies entering the credit card space, Moghe said the bank is ready to face competition in the market.

In March this year, Axis Bank brokered a deal to acquire Citi’s retail banking business in the country for a cash consideration of $1.6bn.

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