Citibank expects card spending to reach the level of the year ago in November on festive offers, financial revival

Mumbai: Citibank expects its customers’ debit and credit card spending in November to be on par with performance the year before, a senior official said Thursday. The increase in spending, which has been impacted across the industry due to the pandemic, will happen through the revival of economic conditions and also festive arrangements launched by the bank, says bank manager, credit card and unsecured lending, Arjun Chowdhry.

It may be noted that local lenders, led by HDFC Bank and its peer ICICI Bank have reported a return to pre-COVID levels starting with the steps taken to open the economy following the severe lockdowns.

More than half of the country’s GDP is driven by consumption expenditure, and resuscitation is therefore becoming an important measure to track.

Chowdhry said in October that bank card spending was at 80 percent from the year ago and has been on an upward trajectory.

“In November, we expect spending to be on a par with the same as the year before,” he said, pointing out that categories such as e-commerce and groceries are very active, while airlines and travel are slow as sectors are yet to open. all the way up.

The bank has introduced over 100 offers through branding as part of its festive offerings, which continues until the end of December and has already seen a triple jump in sales in the first days of the campaign.

“We prioritize offers on products and services that we have found are most relevant to our customers and also provide them with special awards in support of their ambitions,” the bank’s CEO of India, Ashu Khullar, said in a statement.

The purpose of the bonds is to gain value to customers for their affiliation with the bank and also increase commitment, Chowdhry said.

This is another year, he said, adding that some people had held back expenses due to lockdown due to a jailed attitude, while for others there were fewer options to spend.

“We believe that there is recovery on both sides, which is leading to growth in consumer spending,” he said, adding that electronics like mobile phones, laptops and consumer goods like washing machines see higher spending when people spend more time at home.

Meanwhile, he said on the broader lending side that October and November have been encouraging from a borrowing perspective.

In the statement, the bank said that its home loans will now come at rates starting from 6.75 percent, which is among the lowest in the industry. Its customers will not be charged any processing fees until the end of December.