After the Reserve Bank of India (RBI) restricted Mastercard from on-boarding new clients, among the credit card issuers, including co-brand partners, RBL Bank, Yes Bank and Bajaj Finserv are the most impacted as their entire card schemes are allied with Mastercard.
Japanese brokerage Nomura said in a note that these three conglomerates are the most impacted by the RBI move. HDFC Bank has 60 percent of its card schemes tied to Mastercard, Amex and Diners, while for Axis Bank and ICICI Bank, this is about 35- 36 percent. "That said, we don't know the individual card schemes' contribution to overall profitability of the issuers to assess the potential impact," it added. HDFC Bank is already restricted from issuing new cards, and hence is not incrementally impacted.
On the other hand, Kotak's card portfolio is entirely allied to Visa and hence it won't face any issues. The management of both Axis Bank and ICICI Bank have in the recent past talked about their cobranded cards with Flipkart and Amazon, respectively, to be the fastest-growing card schemes. These card schemes are 14 percent and 15 percent of outstanding card.
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