The country's largest private lender, ICICI Bank, today said its cautious approach on credit card issuances would continue even if the economy revives completely.
"Cautious approach will be there and should be taken for the good of the industry even when the economy revives," ICICI Bank Deputy Managing Director Sandeep Bakhshi told reporters on the sidelines of an HR Summit at International Management Institute here.
After the economic slowdown, many banks have reduced their unsecured credit portfolio to a large extent. They have reduced the credit limit for customers and are issuing cards to select customers unlike in the past.
As per the RBI data, the payments made through credit card declined by about 15 per cent in the first two months of the current fiscal compared to the same period last year.
During April and May, the payments made through credit card stood at Rs 9,748 crore against Rs 11,193 crore in the first two months of the last fiscal, it said.
The total unsecured portfolio of ICICI Bank is 5 per cent of its balance sheet.
However, Bakhshi said that distribution of credit cards would increase when the economy scenario gets better.
"There is lagged effect in banking... But it will return as and when the system default gets corrected," he added.
