HDFC Bank becomes 1st Bank to have 2 crore credit cards

HDFC Bank has become the first bank in the country to reach the milestone of having two crore credit cards in force (CIF). The journey began in 2001 with the launch of its first credit card, and the bank reached one crore CIF in 2017. Notably, it has now doubled this count to two crores in just six years and one month.

Market Dominance

As of March 2023, HDFC Bank holds the largest market share in the credit card business in India, accounting for 28.6 percent. According to the latest RBI data, the bank added 3.2 lakh cards in November, bringing the total number of outstanding cards to 1.95 crores. This solidifies HDFC Bank's position as the country's leading card issuer.

HDFC bank's monthly card spending ranges between ₹35,000-45,000 crore. By December 2023, the payments business, includes consumer durable loans and credit cards, contributed to 8 percent of retail assets.

HDFC Bank offered a diverse range of credit cards, including popular options such as HDFC Diners Club Privilege Credit Card, HDFC Regalia Credit Card, HDFC Moneyback+ Credit Card, HDFC Millennia Credit Card, HDFC Infinia Credit Card Metal Edition, and HDFC Diners Club Black Credit Card.

Parag Rao, HDFC Bank's group head for payments business, emphasized the enduring partnership between the bank and the community it serves. He expressed commitment to the journey of financial empowerment and highlighted the dedication to maintaining a legacy of excellence in banking services.

HDFC Recent Performance

Shares of HDFC Bank, continue to face a downward trend becoming a contributor to the Nifty 50's downside on Tuesday. The stock has witnessed a 2% decline, contributing 56 points to the index's downside. Its market capitalization has slipped below ₹11 lakh crore, compared to its peak of ₹12.97 lakh crore on December 29.

This downtrend has resulted in a 13% drop from closing levels on January 16. For the month of January, the stock has declined 15% marking its worst performance since March 2020 when it declined by 27%.

Stock is currently trading below key moving averages, including the 50-Day, 100-Day, and 200-Day Moving Averages. On the charts, it has entered "Oversold" territory, with the Relative Strength Index (RSI) dropping to 23. A reading below 30 indicates that the stock is in "oversold" territory, suggesting a potential reversal or stabilization.

HDFC stock’s downward spiral began after the announcement of HDFC Bank's December quarter results, With the exception of Saturday's session, the stock has consistently declined in all sessions following the results.

Final Words

HDFC Bank's stock is currently facing challenges particularly after the impact of December quarter results. On a positive note, HDFC Bank recently achieved a milestone with two crore credit cards in force, reinforcing its legacy as a financial trailblazer and symbolizing a commitment to community financial empowerment.