ICICI Bank, on July 20, announced the launch of a co-branded credit card with Hindustan Petroleum Corporation (HPCL), continuing its push in the credit cards segment.
Earlier this month, the private sector lender said that it has issued over 2 million Amazon Pay-ICICI Bank credit cards, since its launch in October 2018, making it the fastest co-branded credit card to have crossed this milestone in the country.
The ICICI Bank-HPCL Super Saver Credit Card will offer rewards and benefits to customers on their spend on fuel as well as other categories, while paying electricity and mobile bills, and in departmental stores like Big Bazaar and D-Mart, and e-commerce portals.
The bank said that, typically, similar credit cards offer accelerated benefits on spends in one category alone. “This card breaks that barrier as it enables customers to save on every transaction they make. We believe that this card will empower customers to save more while enjoying the convenience of digital payments,” said Sudipta Roy, Head, Unsecured Assets, ICICI Bank.
ICICI Bank has been among the leading issuers of credit cards in recent months, especially after the Reserve Bank of India (RBI) barred its larger rival, HDFC Bank, from issuing new credit cards in December 2020. ICICI Bank held a 70 percent share in new credit cards issued in December 2020.
In FY21, ICICI Bank gained the highest incremental market share of 32.4 percent, followed by SBI Card at 30.6 percent, according to a recent report by Motilal Oswal Financial Services (MOFSL).
ICICI Bank is focusing on the credit card category from the perspective of increasing profits from customers who revolve or stagger their payments, it told analysts on April 24. “The credit card is a very profitable portfolio and on credit card you make some money on spends and some money on revolvers,” said Anup Bagchi, Executive Director, ICICI Bank.
“Our approach is not just growing the book on credit card. We would want to have a healthy mix of making customers primary, having not only large spenders but also episodic revolvers,” Bagchi added.
HDFC Bank, however, continues to be the market leader in terms of card spends. On June 30, the bank said it is preparing to ensure that it takes back the pole position in terms of cards in force and also increases its spend on market share, once the embargo is lifted.
“We’ve utilised our very large sales force and refocused on the portfolio customers and we’ve rescaled and honed our skill sets in terms of being able to manage customer expectations, focusing on a lot of upsell, cross-sell, better customer service, etc.,” said Parag Rao, Group Head,Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.