IndusInd Bank to Review Credit Card Portfolio Amid CEO Rajiv Anand's Guidance

IndusInd Bank Seeks to Revamp Credit Card Portfolio Amid Regulatory Challenges

IndusInd Bank has announced plans to reassess its credit card portfolio under the new head for cards and payments, while aiming to expand its credit card book in the near term. The move comes as the broader credit card market faces a slowdown due to tighter regulatory norms from the Reserve Bank of India (RBI), stricter underwriting by banks, and caution towards unsecured loans.

According to the bank's latest earnings report, new credit card loans had declined over the last five quarters. In the March quarter, loans from credit cards decreased by 12 percent on a year-on-year (YoY) basis to Rs 9,751 crore, compared to Rs 11,085 crore in the previous corresponding period. On a sequential basis, the loans declined by 5 percent, from Rs 10,264 crore.

Despite the contraction in the card book, card spending has continued to grow, indicating that a large set of customers remain engaged with the bank. This growth in card spending suggests that IndusInd Bank is poised to benefit from its existing customer base as it looks to revamp its credit card portfolio.

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The bank's efforts to reassess its credit card portfolio come as it reported a swing to a profit of Rs 533 crore for the March quarter, compared to a loss of Rs 2,236 crore in the previous corresponding quarter. The improvement in profitability was driven by a drop in provisioning for bad loans and improving asset quality.