India’s largest public sector lender, the State Bank of India, remained the front runner in the Debit cards market, holding a whopping 24 per cent market share in May 2024 while in credit cards HDFC Bank maintained the top position with a 20 per cent market share, revealed latest data by 1Lattice.
Top banks followed the list like Bank of Baroda which held about 10 per cent market share, followed by Canara Bank, Union Bank and HDFC Bank with approximately 6 per cent market share each and Bank of India with a 5 per cent market share.
In the Debit cards segment, Axis Bank and Bank of Baroda recorded the highest growth, of approximately 15 per cent and 14 per cent respectively on a year-on-year basis, while Canara Bank recorded 12 per cent yoy growth. Thereafter, following the lead, HDFC Bank and Union Bank registered a growth of 8 per cent and 7 per cent respectively.
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Even though the State Bank of India retained its top position in the debit cards market, it registered a massive degrowth of about 15 per cent in May. Bank of India also registered a degrowth of 7 per cent while Punjab National Bank registered a degrowth of about 2 per cent and ICICI Bank registered a degrowth of 1 per cent on a yoy basis as of May, 2024, revealed the data.
In the past four years, debit and credit card transactions have grown at a CAGR of 20 per cent and 19 per cent respectively. There is said to be 71 million active credit cards in FY22, a recent report by PWC India highlighted.
It is expected that card-based transactions will continue to witness steady growth, at almost 16 per cent year on year for the next four years.
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HDFC Bank dominates credit card market
India’s largest private sector bank, HDFC Bank continued to lead the race in credit cards market with a 20 per cent share. SBI Cards, ICICI Bank and Axis Bank followed the list with 19 per cent, 17 per cent and 14 per cent market share respectively in May, 2024, highlighted the 1Lattice data.
HDFC Bank recently announced significant updates to the terms and charges for its credit card holders. These changes, which take effect on August 1, 2024 cover a range of transaction types and fees.
Maximum growth in this segment was seen by Bank of Baroda and IndusInd Bank with a 30 per cent yoy growth and 27 per cent yoy growth respectively, holding a market share of 2 per cent and 3 per cent respectively.
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The list was followed by Kotak Mahindra Bank, ICICI Bank and HDFC Bank with a 16 per cent yoy growth each and 6, 17 and 20 per cent market shares respectively, RBL Bank with 15 per cent growth and 5 per cent market share and Axis Bank with 15 per cent yoy growth and 14 per cent market share.
The 1Lattice data further revealed that the global leaders performed below expectations in credit cards segment, with American express registering only 1 per cent year-on-year growth. It held a market share of only 1 per cent.
