HSBC Credit Cards up for sale in India too

First 4 digits of a credit card
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HSBC credit cards franchises in India are seemingly up for sale. Indus ind had just grabbed the Deutsche Bank franchise in India for $50 mln.

Citicards have attrited from 5.8 million customers in 2008 to 3.5 million customers. Indian banks like ICICI Bank and HDFC Bank are holdng at 2.5 million cards each right now. The credit cards market witnssed a lot of aggressive marketing tactics since 2000 onwards (when ICICI BAnk made an entry) as Credit hungry metropoltan customers were few and far inbetween. The indian franchises maintained a regulatory and marketing strategy that was distinctly split from its global franchise yet with reliance on usurius interest rates prescribed for rollovers, and high delinquent rates, keeping the business profitable was not enough.

HSBC had also clamped down its Personal Lending business for a long time since 2008 as sales practices in unsecured loans included distributer collusion and missing underwriting goals wilfully. The practices are yet condoned by the Indian duo though they have been consolidating on lower numbers in this business since 2008

HSBC strategy might well agree with the latest studies placing India as 16 out of top 20 emerging markets. The bank has found regulators in China and India tough to ply and not enough rich customers. Stnchart also faces challenges after two resilient years in 2009 and 2010

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