Banks never lose money in a credit card business!!! šµ
This is IDFC first bankās loan book, credit card is 2% of their loan book.
Which means 3,431 crores is the total amount of the loan book given as credit limit to customers.
Why would a bank create a product where theyā¦
This is IDFC first bankās loan book, credit card is 2% of their loan book.
Which means 3,431 crores is the total amount of the loan book given as credit limit to customers.
Why would a bank create a product where theyā¦
Letās discuss how banks make money on credit cards,
ā Annual fees
ā Cash advance fees
ā Balance transfer fees
ā Late fees
ā Interchange Fee
ā Interest Income
ā Annual fees
ā Cash advance fees
ā Balance transfer fees
ā Late fees
ā Interchange Fee
ā Interest Income
Letās have a look what management said in their IDFC First Bank Q4 concall.
āI think it's like 24-ish, 25-ish percent are the revolvers. To the best of our knowledge many other people in the industry have like maybe 30%-35% oddā
āAnd just to add, in addition, there are peopleā¦
āI think it's like 24-ish, 25-ish percent are the revolvers. To the best of our knowledge many other people in the industry have like maybe 30%-35% oddā
āAnd just to add, in addition, there are peopleā¦
The odds are stacked against you.
The product is designed in such a way that it triggers your impulsive behaviour and ticks you into buying products you canāt afford to give you instant gratification.
The product is designed in such a way that it triggers your impulsive behaviour and ticks you into buying products you canāt afford to give you instant gratification.
Letās have a look at SBI cards ROAA
Return On Average Assets is basically =net income/average total assets.
Where net income for a bank,NBFC or credit card company is the profit and average total asset is the total loans given in the form of credit limit to customers in case ofā¦
Return On Average Assets is basically =net income/average total assets.
Where net income for a bank,NBFC or credit card company is the profit and average total asset is the total loans given in the form of credit limit to customers in case ofā¦
Letās look at another very important number which is NIMās
Net Interest Margin which in very simple terms is (Interest Earned-Interest paid)
Letās say a bank borrows money from depositors at 5% and lends at 12% ,
The NIM is 12-5%=7%
The NIM for SBI card is as high as 12% whichā¦
Net Interest Margin which in very simple terms is (Interest Earned-Interest paid)
Letās say a bank borrows money from depositors at 5% and lends at 12% ,
The NIM is 12-5%=7%
The NIM for SBI card is as high as 12% whichā¦
SBI cards reported a net profit of 2,258 crores in FY 23.
It has 1.6 crore cards as of March 2023 which means it clicked a profit of ā¹1411 per card.
By selling you cards with ā¹500 fee ,ā¹2000 milestone bonus ,lounge access and what not SBI is generating profit almost 3x theā¦
It has 1.6 crore cards as of March 2023 which means it clicked a profit of ā¹1411 per card.
By selling you cards with ā¹500 fee ,ā¹2000 milestone bonus ,lounge access and what not SBI is generating profit almost 3x theā¦
With the fast growing economy ,explosive consumer spending, young population and linking of credit cards on UPI the industry is set for a multi decadal growth in India š®š³
You need to decide which side you want to be the person paying interest or using cards for your benefit.
You need to decide which side you want to be the person paying interest or using cards for your benefit.
Visit my micro website and apply for life time free credit cards of your choice seamlessly: rb.gy š„š„
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Share the first tweet and follow @AmazingCreditC for more such insightful posts š³šš»
Visit my website and apply for life time free credit cards of your choice across all the banksā
Visit: rb.gy
Share the first tweet and follow @AmazingCreditC for more such insightful posts š³šš»
Visit my website and apply for life time free credit cards of your choice across all the banksā
Visit: rb.gy
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