Those of you who slept through Independence Day weekend should go oevr the "Foreign Banks in India: Looking cheerful again" profile for banks in August . Also RBI's data on Credit Cards outstanding was released on the weekend and we updated thus:

(HT)Spending through credit cards rose by 30% year-on-year to Rs22,128 crore during the April-June quarter of 2011-12 against Rs16,948 crore last year, according to data released by the Reserve Bank of India (RBI). Spending through debit or ATM cards, increased by 45% year-on-year to Rs11,691  crore during the April-June quarter compared to Rs8,065 crore last year.

Though Spending is up to $5.5 bln in the quarter the $22 bln annual rate is a mere 1-1.5% of the Indian GDP depending on what estimate of GDP you work with, the growth of 20% inline with GDP growth of 9% till March 2011

Number of outstanding cards was down, banks announcing aggressive strategies in August only in terms of HDFC Bank adding new customers to 25% of the mix up from 10% last year and Axis growing to more than half a million cards (690k) depending on existing bank customers) Citi is going to be making a fresh start in retail cards (unsecured loans) and HSBC may also start slowly yet only in Personal Loans and select card segments HSBC retail' slosses in India have been surprising wesp with the PIL product. Meanwhile debit cards have grown to 25.40 million or approximately 1/3rd of the mobile phone enabled population.

The growth has been 2.4 mln debit cards in May and June alone

Other tidbits:

Alongwith affordable housing segments in the next budget, banks have been extending Swabhimaan (in the public sector banks) initiative largely thru mobile banking to reach larger rural populaions and that will also be a payment interface /mechanism for the users sooner than later

Q3 will probably be an important spend season on both Credit and Debit Cards, Debit Cards though in numbers 10X the business are reponsible for only 1/3 rd of the payments hru the Card mechanisms at POS terminals and online. Cheque clearing systems in India deliver Rs 104 tln in transactions annually wih April 2011 posting Rs 8.66 Tln by cheques, 17% thru the Mumbai region and another 15% thru Delhi Online Transaction systems of NEFT, NECS, RECS (Ahd, Blr, Kol, Chn) and others have become equal in weight of late

Deposits oas of June 2011 grew 18% yeasr on year in Indian Commercial Banks to INR 2.8 Tln while Advances grew at nearly 20% despie rate hikes

 

 

More Data is being sdought for this report/analysis

 

 

 

Posted via email from The investment blog on Post