172@29@17@103!~!172@29@0@53!~!|news|business|customers-buying-high-value-products-through-credit-card-emis-at-all-time-high-hdfc-bank-5814811.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Watch experts decode 'The rise of ESG investing' on October 29 at 4pm. Register Now!
you are here: HomeNewsBusiness
Last Updated : Sep 08, 2020 11:02 PM IST | Source: PTI

Customers buying high-value products through credit card EMIs at all-time high: HDFC Bank

The 'millennia' is driving a bulk of new card acquisitions and accounts for a big part of the customer portfolio now, Chatterjee said adding that the proportion of cards sourced digitally in the new line is three times that for others.

PTI
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Number of customers preferring to buy high-value products through instalments stood at an "all-time high" during the coronavirus pandemic, the country's largest private sector lender HDFC Bank said on September 8.

Even as concerns get raised about asset quality given the high job losses and salary cuts, the bank said it is "bullish" on the credit card equated monthly instalment (EMI) products, said Angshuman Chatterjee, head (consumer credit cards and digital acquisitions) at HDFC Bank.

According to some think-tanks, job losses are high in the organised segment, which has been a traditional favourite for the banks. As part of the EMI product, HDFC Bank ties up with merchants or product manufacturers to help a customer get a cheaper deal along with the ability to spread repayments over a period of time. There are reports of demand having been hit severely in the economy, which has been driven by the consumption in the past few years.

Close

"Credit card EMIs are at an all-time high. So, customers are choosing to do larger spend by breaking them up into simple EMIs. That is helping the consumption," Chatterjee said in a video message for bank employees. He added that the trend is visible across all segments of card holders, including the newly launched millennia cards targeted at the younger users.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

On the 'millennia' line of cards launched in August 2019, the bank has added 15 lakh customers having the credit, debit and prepaid cards as against its target of reaching 20 lakh customers in two years, he said.

The 'millennia' is driving a bulk of new card acquisitions and accounts for a big part of the customer portfolio now, he said adding that the proportion of cards sourced digitally in the new line is three times that for others.

Chatterjee said that over 70 per cent of its customers are right now using e-commerce as against 47 per cent earlier, which shows a shift to online shopping during the pandemic, he said. He said there is an urge to travel and do other discretionary spending among the customers, but access is an issue because of the restrictions imposed to contain the infections.

Once the restrictions are lifted through things like the arrival of a vaccine, there will be a huge surge in consumption, Chatterjee said.

Follow our full coverage of the coronavirus pandemic here.
First Published on Sep 8, 2020 11:00 pm
Sections