The battle for credit cards is ready to break out again after the embargo on new card issuances by HDFC Bank was lifted last week.

The private sector lender on Monday announced an aggressive plan to add 5 lakh credit cards to its portfolio every month beginning February 2022. “Over the next three to four quarters, our aim is to regain the market share we have lost,” said Parag Rao, head of payments, consumer finance, digital banking and IT, HDFC Bank.

The bank’s market share in credit card outstanding has shrunk by 200 basis points to 23.6 per cent since December last year when the embargo was imposed. But it still retains its pre-eminent position with a base of 1.48 crore credit card outstanding as of June 2021. After HDFC Bank, SBI has a market share of 19.2 per cent followed by ICICI Bank at 17.6 per cent.

The bank has identified over 20 initiatives to drive its aggressive growth plan. These include launch of co-branded credit cards with corporates across pharma, travel, FMCG, hospitality, telecom and fintech sectors. The bank has also revamped its existing range of cards over the past nine months and is aiming at strategic partnerships with new companies.

Rao said there is significant headroom to grow within the bank’s existing liability base of six crore customers.

“Right from the inception of the business, we have maintained that a large portion of our portfolio will always be our internal bank customers who have at least a liability relationship with us. That strategy continues. A significant portion of the new customers acquired will come from our existing liability base,” he said.