Yes Bank has launched seven credit cards and has set itself an aggressive target of grabbing a 15-18 percent market share by 2020.
Pralay Mondal, head of the bank’s retail and business banking vertical, says he is confident of achieving this target, while citing data which shows late entrants into the market have grown quicker than the pioneers.
The market leader in India’s credit card market is HDFC Bank which offers over 70 lakh cards. The second and third biggest players, ICICI Bank and State Bank of India, have issued just over 36 lakh cards each.
Yes Bank aims to issue 40-50 lakh cards by 2020, Mondal said.
The bank anticipates that annual credit card spends, which currently stand at around Rs 2.4 lakh crore will grow much faster than they have over the past 10 years. According to Mondal, banks stopped hard selling credit cards after the financial crisis struck in 2008.
Prior to 2008, credit card spends were growing at over 40 percent per year. Mondal says India could witness this rate again over the next three years. However, while spends continue to rise, this is not likely to add to the bank’s loan book, he said.
Yes Bank has launched its credit card offering with a base interest rate of 1.2 percent for its most premium product, the “Exclusive” card.