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Interest rate on a credit card does not decrease irrespective of repo rate. So yes, their NIM will increase by a few points. Although it will be a small increase as the spread is already very high.
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Credit card companies bear the cost of cashbacks. They earn from these ways:
a. Merchant fees
b. Interest from consumers who default or do minimum payment.
c. This is slightly newer for Indian cc ecosystem. No cost emi. In this scenario, interest on emi is paid by the merchant.
I see credit cards going very big in India. Literally everyone I know (salaried, 25) in my circle is having 3 or more cards. And always applying for more. Now how will SBI Cards hold up is a different matter.
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