New Delhi: The country's largest private lender, ICICI Bank, on Thursday said its cautious approach on credit card issuances would continue even if the economy revives completely.
"Cautious approach will be there and should be taken for
the good of the industry even when the economy revives,"
ICICI Bank Deputy Managing Director Sandeep Bakhshi told
reporters on the sidelines of an HR Summit at International
Management Institute here.
After the economic slowdown, many banks have reduced
their unsecured credit portfolio to a large extent. They have
reduced the credit limit for customers and are issuing cards
to select customers unlike in the past.
As per the RBI data, the payments made through credit
card declined by about 15 percent in the first two months of
the current fiscal compared to the same period last year.
During April and May, the payments made through credit
card stood at Rs 9,748 crore against Rs 11,193 crore in the
first two months of the last fiscal, it said.
The total unsecured portfolio of ICICI Bank is 5 percent
of its balance sheet.
However, Bakhshi said that distribution of credit cards
would increase when the economy scenario gets better.
"There is lagged effect in banking ... But it will return
as and when the system default gets corrected," he added.
Bureau Report
First Published: Friday, August 21, 2009, 15:19