Despite the glooming economy the Private sector banks have shown a robust growth in credit card and personal loan business. According to the reports second largest bank of the country ICICI bank has reported a growth of 141.6 per cent growth in personal loan disbursement in the past financial year. Similarly Axis bank has shown a growth of 49.8 per cent last year in personal loan business, while the credit card business expanded 31.1 per cent.
HDFC bank the leading bank in the credit card business, saw growth coming back in the last quarter of FY14 with the credit card business expanding 21 per cent and the personal loans by 17 per cent. Apart from this, the systematic use of credit bureaus by banks is also giving the banks confidence to extend these unsecured loans. Jairam Sridharan, head (consumer lending and payments) at Axis Bank stated that with the credit bureaus in place now, it is much easier for us to figure out the credit history of a consumer and lend on that basis.