![]() ICICI Bank raises credit card ratesPublished on Tue, Jun 03, 2008 at 08:50 | Source : Business Line Updated at Tue, Jun 03, 2008 at 08:55 Hyderabad / Chennai, June 2 The monthly credit card statement that comes laden with lots of offers, gift coupons and summer deals at this time of the year would normally not have got more than a casual glance from Mr K. Nath. But something caught his attention this time.
Hiking rates in an industry already known for high rates is a sure sign of troubled times. Most card companies charge around 2.7 per cent to 2.9 per cent per month or about 36 per cent per annum. Even this has been criticised as being a touch usurious. For years now, there has been a continuous clamour for lower interest rates on credit card spending. That's something that card companies have resisted, citing high default rates thanks to a combination of poor laws, the lack of any security and the general climate of bad borrower behaviour. Default rates across the card industry that were in the 5-7 per cent range are now double that, says Shameek Bhargava, Managing Director, Head of Cards, Asia Pacific, Deutsche Bank, India. contd on page 2...
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