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Early in the year 2020, when the COVID-19 epidemic first appeared, the economy was doing rather well. The epidemic, however, caused businesses to close and led to an increase in unemployment in 2021. On the other hand, the Bureau of Labor Statistics stated that the unemployment rate for the month of November 2021 was only 4.2 percent. This represents a significant improvement compared to the previous month of November 2020, when the rate was 6.7 percent.
We are still dealing with inflation, and I don’t believe that it will be going away any time in the near future. Nevertheless, in spite of this, I still anticipate four favourable trends for you and your credit cards in the year 2022:
There will be a rise in the number of credit card offers and an expansion into the subprime market
The amount of credit card debt carried by consumers will rise
There will be a revival of the use of balance transfer credit cards
Options to buy now and make payments later will be supported by credit card providers
There will be a rise in the number of credit card offers, as well as an expansion into the subprime market.
Consumers have been receiving a significant number of credit card offers from card issuers as of late. In addition, several cardholders have reported receiving credit limit increases without even having to ask for them, which appears to be very thoughtful on the part of the issuers. Be aware, however, that the credit card corporations’ goals aren’t exactly those of benevolent organisations before you write a letter of gratitude to the company that issued your credit card.
They observe customers returning to retail establishments and engaging in spending, and as a result, they desire your business. A transaction charge is paid to the credit card provider each time you use the card to make a purchase. Additionally, if you carry a balance, they have the right to charge you interest on that sum.
In the year 2020, as a result of the epidemic, there was a shortage of credit, which meant that it was challenging to be approved for a credit card or to have one’s credit limit increased. Without access to financing, it was difficult for people who had had credit problems in the past to make it through the pandemic.
Results for the fourth quarter of the year for DCB Bank show a net profit of Rs 113 cr.
According to a statement with the regulatory authorities, DCB Bank reported that its total income for the March quarter of fiscal year 2021-22 climbed to Rs 1,035 crore from Rs 967 crore in the same quarter of fiscal year 2020-21.
On Saturday, the private sector lender DCB Bank said that its net profit for the quarter that ended in March 2022 had increased by 44.87 percent, coming in at 113 crore rupees.
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In terms of value, the gross non-performing assets came in at Rs 1,290 crore for the period under review, which is an increase from the previous figure of Rs 1,083 crore.
In terms of value, the gross non-performing assets came in at Rs 1,290 crore for the period under review, which is an increase from the previous figure of Rs 1,083 crore.
On Saturday, the private sector lender DCB Bank said that its net profit for the quarter that ended in March 2022 had increased by 44.87 percent, coming in at 113 crore rupees.
When compared to the previous year’s results for the same quarter, the bank reported a net profit of 78 crore Indian rupees.
According to a statement with the regulatory authorities, DCB Bank reported that its total income for the March quarter of fiscal year 2021-22 climbed to Rs 1,035 crore from Rs 967 crore in the same quarter of fiscal year 2020-21.
The net interest income for the quarter increased to 380 crore, up from 311 crore the previous quarter.
However, the quality of the bank’s assets demonstrated a modest deterioration from the previous year’s corresponding period, reaching 4.32 percent of the gross advances as of March 31, 2022, in comparison to 4.13 percent by March 2021. However, compared to the rate of 4.78 percent at the end of December 2021, it has increased sequentially.
In terms of value, the gross non-performing assets came in at Rs 1,290 crore for the period under review, which is an increase from the previous figure of Rs 1,083 crore.
On the other hand, the net non performing assets, also known as bad loans, decreased by 1.97 percent, which corresponds to a decrease of Rs 573 crore. This compares to a decrease of Rs 594 crore during the same time period in the previous year.
NPCI is concentrating on acquiring new clients in order to broaden the base of RuPay credit card users.
As the retail payments umbrella body is still a new entrant in this space, a top official of the company stated that the National Payments Corporation of India (NPCI) is focusing on gaining new customers in order to expand the base of indigenous credit cards that are enabled with the RuPay payment system.
The National Payments Corporation of India (NPCI) is a parent organisation that acts as a gateway for the RuPay card to facilitate retail payments and settlements in India. In order to construct a reliable payment and settlement system, the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) have joined forces to launch this endeavour.
“It is essential for us at RuPay to broaden the availability of our payment cards and increase the number of locations where they may be used. Within the realm of debit cards and prepaid cards, RuPay is a formidable competitor. At this time, we are concentrating our efforts on establishing a solid presence in the credit card market as well, “Rai stated.
She went on to say that during the course of the past two years, the number of credit cards in circulation in India has increased from approximately 40-42 million to approximately 65 million. “Therefore, there is a demand that is not being met, and customers want more and Due to the fact that RuPay is a system designed specifically for India, we are confident that we will be able to satisfy this need in the market.”
Union Bank and NPCI are launching a credit card for micro, small, and medium enterprise (MSME) borrowers.
Union Bank of India and the National Payments Corporation of India have collaborated to launch a credit card for borrowers in India, with the goal of assisting micro, small, and medium-sized enterprises (MSMEs) in overcoming the difficulties they face in meeting the costs associated with running their businesses.
According to a joint statement that was released on Friday, the Union MSME RuPay Credit Card is a new digital payment tool that is available to the micro, small, and medium-sized enterprise (MSME) clients of Union Bank of India for the purpose of meeting their business-related operational expenses with interest-free credit for up to 50 days.
According to the statement, the credit card would make it easier for micro, small, and medium-sized enterprises (MSMEs) to pay their business-related operational expenses.
In addition to a number of other benefits, the card grants its users access to an EMI facility for use on business-related acquisitions. On this card, micro, small, and medium-sized enterprises (MSMEs) will also have access to particularly curated and effective business services, which will assist them in expanding their operations across the majority of digital platforms.
Additionally, by using this card, customers will be eligible for benefits such as accidental insurance coverage of up to 10 lakh, access to domestic airport lounges two times every quarter, and other awards.
Along with simplifying their payment mechanism, the use of this credit card would lower the amount of cash that small and medium-sized enterprises (MSME) need to withdraw for their company expenses.
Conclusion
When COVID-19 first debuted in 2020, the economy was booming. The outbreak closed businesses and increased 2021 unemployment. In November 2021, the BLS reported a 4.2% unemployment rate. This is a big improvement from November 2020, when unemployment was 6.7%.
I don’t think inflation will end soon. Despite this, I predict four positive credit card trends for 2022:Credit card offers will rise and the subprime sector will expand. Consumer debt will soar. Balance transfer credit cards will return. Credit card companies will provide buy-now-pay-later options.
