IDFC First Bank Limited

There are few things that takes years to build up. After the NPA cleanup and provisioning done by all the banks during Covid times, this issue has been sorted and in healthy state for all the Banks however, Credit Card business requires years to build-up.

1. The offers provided by the top 4 in the above list is usually very lucrative.
2. If you visit any mall, shopping centers, you will find sales people of these companies irritating and shamelessly asking you to get the CC. That’s the nature of CC business.
   I do not see a huge amount of innovation coming up in the credit space and it is over-saturated. Naturally for IDFC to build-up and reach top 5 is going to take a while.
   There is no specific USP of IDFC FB CC which is so attractive that they can snatch existing customers of established banks.
   Neo banks and other new age digital companies are trying real hard with some unique propositions but given the risks involved, RBI is very cautious about not spoiling the spending habits of the Indian population which is healthy for our economy.

I would avoid being overoptimistic on the CC business.

PS: I hold IDFC in my portfolio, have multiple savings account in my family and CC as well.