I think they cannot increase MDR after a certain limit and so they have to use some tactics to reduce reward points redemption costs by probably decreasing validity excluding certain MCC codes such as utility, wallet where MDR is low, to improve their cost to income, this has been done by Axis almost all their CCs are devalued and lounge access is restricted too premium cards, that shall be done, I think NPA should not be an issue rather we have to understand that the NIM will contract but they done what should be the appropriate valuation in that case I am trying to figure that out.
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