Standard Chartered Bank?s India CEO Neeraj Swaroop said that the banking sector is currently facing higher delinquencies in its credit card business segment. Speaking on the sidelines of a function held in Mumbai on Thursday to mark the launch 1Money ? a debit-cum-redit card of Standard Chartered Bank, he said, ?Although the credit card business is growing at around 30% on year-on-year basis for the past few years, I believe at this point of time, most credit card companies in the country are facing higher delinquencies.?
Swaroop said Standard Chartered India has not yet witnessed a change in its credit card delinquency going up.
?However, we do understand that with the economy slowing down and interest rates going up, there is a possibility that delinquencies in the credit card portfolio may rise in the future. We need to be more watchful now. If the selection of new credit card customers is not done properly, delinquencies may rise,? he added.
Speaking on the existing inflationary scenario in India, Swaroop said, ?I do not think the parameter like steep rise in crude oil price was factored into current inflation. So, oil price softening in future may not have any direct impact to the inflationary levels in the country since there are too many variables that affect inflation in India.?
