The interest rates on credit cards issued by HDFC will not rise to 3.25%. A senior official of the bank stated that the bank was charging low rates of interest on some credit cards. The interest rate that was being charged was lower than the industry however now they have decided to bring their rates at par with the current industry rate. The bank has also reduced their monthly targets form getting 100,000 new customers to around 65,000 - 70,000. By the end of June, their credit card portfolio came down to 5.94 million from 6.56 million which was in May. Even after this drop, they still managed to keep their position in the market as one of the leading credit card issuers. They also decided to reduce the cards which were inactive. This is a process that is common in banks. HDFC is being very careful while picking customers. |