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Unlocking Growth: Kotak Mahindra's Ambitious Plans for the Credit Card Business

Kotak Mahindra

In a strategic move to capitalize on the surging demand for credit cards in India, Kotak Mahindra Bank is set to revamp its credit card business. Frederick D’Souza, the dynamic Business Head of Credit Cards at Kotak Mahindra Bank, recently shared the bank's ambitious plans for the future. This article explores Kotak Mahindra's strategy to expand its credit card offerings, particularly focusing on RuPay Unified Payments Interface (UPI) credit cards. Additionally, we delve into the overall credit card landscape in India and the bank's approach to tapping into this burgeoning market.

The Credit Card Boom in India

The Reserve Bank of India's latest data for May 2023 reveals that credit card spending has reached an all-time high of Rs 1.4 lakh crore. This staggering figure underscores the immense potential of the credit card market in India. Recognizing this opportunity, Kotak Mahindra Bank is gearing up for an aggressive push in its credit card division.

Kotak Mahindra's Vision

Frederick D’Souza, the driving force behind Kotak Mahindra's credit card business, is determined to make a substantial impact. He affirms the bank's intention to introduce new campaigns, particularly for its UPI credit card business. Presently, Kotak Mahindra Bank boasts seven RuPay credit cards that have already shown promising results. D’Souza confidently asserts, "We have been at the forefront of launching RuPay credit cards. We see UPI on credit as a gamechanger, and we plan to launch more cards while going aggressive with our existing credit card offerings."

Impressive Growth

The statistics reflect Kotak Mahindra Bank's remarkable growth in the credit card sector. In the April-June FY24 quarter, the bank's credit card business experienced a whopping 67 percent YoY growth, soaring from Rs 6,820 crore to Rs 11,360 crore. This substantial growth demonstrates the bank's efficacy in catering to the evolving needs of Indian consumers.

Diverse Credit Card Portfolio

Kotak Mahindra Bank doesn't limit itself to RuPay UPI credit cards alone. The bank offers a diverse range of credit cards, including Indian oil credit cards and co-branded cards in collaboration with well-known brands like Myntra and PVR. This diversity allows the bank to cater to a broad spectrum of customer preferences.

Leveraging UPI on Credit Cards

The integration of UPI with credit cards is a pivotal development in the Indian banking industry. The Reserve Bank of India paved the way for this integration in June 2022. Customers can now link their RuPay credit cards to UPI, offering added convenience and flexibility. Kotak Mahindra Bank has embraced this innovation and continues to explore partnerships with fintech players and digital partners to enhance its credit card offerings.

Collaborative Endeavors

Kotak Mahindra Bank isn't alone in this venture. Several other banks, including Axis Bank, HDFC Bank, Indian Bank, Punjab National Bank, Union Bank of India, and YES Bank, have enabled the linking of RuPay credit cards to UPI. The demand for RuPay UPI credit cards is skyrocketing, and Kotak Mahindra Bank plans to run strategic campaigns to attract more customers to this segment.

The Indian Credit Card Landscape

The data from the Reserve Bank of India underscores the rapid expansion of the credit card market. The number of credit cards in use has surged by over 5 million since January, crossing a staggering 87.4 million in May. However, this growth also brings challenges, as the non-performing asset (NPA) level for public sector banks in the credit card segment reached 18 percent in March 2023, compared to 9 percent a year ago. In contrast, private sector banks reported a significantly lower gross NPA of 1.9 percent.


Kotak Mahindra Bank's proactive approach to its credit card business aligns with the booming credit card market in India. With a robust portfolio that includes RuPay UPI credit cards and collaborations with prominent brands, the bank is well-positioned to meet the diverse needs of its customers. As the demand for credit cards continues to soar, Kotak Mahindra Bank's strategic vision promises to keep it at the forefront of the industry, fostering growth while managing risks effectively.

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