Indian Banks are exploiting the potential of blanket advertising, cold call campaign and even pushing marketing to malls for attracting customers towards credit cards and personal loans. Mostly this state-dominated sector is known for lack of aggressive marketing strategies. The slow recovery in corporate lending has triggered this effect.
The corporate lending has been a major concern in the emerging economy of the India. After the strong government at the center, the economy has been showing the signs of recovery since long time. The company profits went down during the period of slow growth along with freeze in the infrastructure projects. The average income level in India is still growing though at a slower pace. For long time economy hasn’t seen large scale job cuts after the world financial crisis.
The current push for lending is biggest since the financial slowdown of the 2008. The lender are trying to increase te loans around 30 percent as the emerging economy is hungry for the spending in luxury. The spending on travel, holidays abroad are growing as the disposable income is increasing.
The growth potential in India is increasing with world class rating agencies are giving positive rating for investing in Indian economy. As per the latest data, India has around 20 million credit cards for the vast population of 1.3 billion people. Only 0.5 percent people have access to credit cards and very fewer people have access to formal loan. Though home loan consists of half of the loans in India, the demand for the home loan is still increasing.