Guwahati: The non-performing assets (NPA) in the bank’s credit card segment between April and December 2022 have seen a jump of Rs 765 crore, or 24.5%, the Reserve Bank of India said this to an RTI query by the Sunday Express.
However, credit card NPAs made up 2.16% of the total credit card outstanding or loan exposure as of December 2022, a marginal increase from 2.11% on March 31, 2022.
Though the credit card NPA figure is much smaller when compared to the total outstanding of banks, the rising NPA trend is becoming a source of worry for RBI.
It is learnt that the central bank has cautioned banks on unsecured loans such as personal loans and credit cards.
The banking system’s credit card outstanding was at Rs 1.8 lakh crore as on December 30, 2022. The latest RBI data shows that the banking sector’s credit card loan exposure stood at Rs 2 lakh crore as on April 21, 2023. This is 1.5% of their total loan book.
The RBI provided credit card NPA data for the nine months ended December 31, 2022, as data for the fourth quarter ended March 2023 was being compiled.
Deputy Governor Michael Patra in his article on non-performing assets stated that the banks charge a high-interest rate of around 38-42% on outstanding dues after the grace period.
According to the RBI’s State of Economy article, published in the April 2023 monthly bulletin: “Delinquencies are reducing in the 90+ days past due bracket across all categories of consumer credit, barring credit cards and education loans.
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