Axis Bank, Kotak Mahindra Bank and few others reduce credit card limits of customers by up to 90%

Credit card limits of nearly 200,000 customers of Axis Bank has been reduced by 30-90% with effect from April 15.

Private sector lenders such as Axis Bank and Kotak Mahindra Bank have reduced credit card limit of their customers between 30-90% in order to reduce repayment risk, making it difficult for customers, living on credit due to salary cut or job loss.

According to a report in the Economic Times, credit card limits of nearly 200,000 customers of Axis Bank has been reduced with effect from April 15.

According to Axis Bank’s quarterly report in December 2019, the private sector lender had a 12.6% market share while it had 10.7% share in the total credit card spending.

According to RBI data, outstanding amount on credit card reached an all-time high of Rs 1.1 lakh crore at the end of February, up nearly 26% over last year. There were more than 56 million credit card customers in India at the end of January 2020. Credit card loans accounted for 1.2% of total bank credit in the first 11 months of FY20 compared with 0.5% in FY15.