Corona’s impact: Credit card costs down, drop by more than 50%


During the Corona transition, people have reduced spending through credit cards. It has declined in the last financial year (2021-22), which ended on 31 March. Credit card spending registered a growth of 22.5 per cent in the financial year 2019-20, but in the financial year it had come down to 7.8 per cent. Banks say that during the current financial year, there has also been a decrease in credit card spending in April and May. & Nbsp;

Banks are not insisting on creating new customers of credit cards & nbsp;

According to a private sector bank, due to lockdown and corona restrictions, credit card expenses have been recorded in the last 45 days. Banks say that this has led to a decline in the good asset quality (credit card) of the credit card segment. & nbsp; Due to lockdown and other restrictions, people have reduced their spending speed, so they are not putting much emphasis on adding new customers to credit cards. & nbsp;
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Lockdown From tourism, the entertainment industry’s consumer decreased & nbsp;

According to industry sources, in the quarter ended March 31, 2021, credit card expenses registered a growth of ten percent. While an increase of eight percent was recorded in new credit cards. Although it was a low-base effect. However, on a sequential basis, the expenditure through credit card only increased by four per cent. In fact, there has been a decrease in travel and tourism from people, not getting out of the house for entertainment and spending on other things. This has resulted in a decrease in credit card spending & nbsp;. Bank sources say that risk increases as credit cards are in unsecured portfolios. & Nbsp;

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