Credit card industry could see turnaround: HSBC

New Issuances Propel Growth

- KSHIPRA PETKAR

BANKS GRAPPLING WITH stress in credit card portfolios could see growth in the segment as issuances rise and the asset quality improves, HSBC Global Research said in a report.

"If such trends continue, the credit card industry could see a turnaround, with both receivable growth and profitability improving over the near-to-medium term," the report said.

FY25 was challenging for card issuers as receivable growth and return on equity were impacted due to rising asset quality stress and slowdown in issuances.

According to Reserve Bank of India data, credit cards in force were up 7.6% year-on-year to 111.2 million as of May. On a month-on-month basis, it rose merely 0.7%.