Select Page

The credit card industry saw a net addition of 0.76 million credit cards in May’24 (0.74 million in April 2024 and 1.2 million in March 2024), led by healthy traction by HDFC Bank, ICICI Bank, Axis Bank, and SBI Card. HDFC Bank added the highest numbers of new cards (289k), followed by Axis Bank (117k), SBI Card (114k), ICICI Bank (77k), IndusInd Bank (30k). Kotak Mahindra Bank witnessed a sharp decline of 65k amid RBI restrictions. Among emerging players, IDFC Bank reported strong growth of 89k during the month, thus taking its total card base to 2.7 million.

Card spending grew 17% YoY to Rs 1.65 lakh core (5% MoM growth). Among the top players, Kotak Bank, ICICI Bank, SBI Card, and HDFC Bank clocked YoY growth of 43%, 31%, 11%, and 3%, respectively. IDFC Bank and Federal Bank reported faster growth of 52% and 43% YoY, respectively. On a three-year basis, spending for the industry recorded a CAGR of 47%, led by healthy growth for all large players (40%-65% range). Among foreign players, SCB declined 1.2% MoM, while AMEX grew 8% MoM.

The total number of outstanding credit cards in the system grew 17.7% YoY to 103.3 million in May’24. Among key players, IIB and BOB reported strong YoY growth (up 27.5%/30.1%, albeit on a low base), followed by HDFC Bank (up 16.5%), ICICI Bank (up 16.4%), Kotak Mahindra Bank (up 16%), Axis Bank (up 15%), and SBI Card (up 11.5%).

Among foreign players, Standard Chartered (SCB) witnessed a 2.5% YoY decline, while AMEX grew 1.0% YoY. In terms of CIF market share, small and emerging players (IDFC Bank, Bank of Baroda, IndusInd Bank, Federal Bank) have gained market share, while large players have been cautious with unsecured loans, resulting in a market share decline for SBI Card, Axis Bank, HDFC Bank, and ICICI Bank by 102bp, 33bp, 22bp, and 19bp YoY to 18.5%, 13.9%, 20.4%, and 16.5%, respectively.

Spending per card flat YoY

Monthly spending per card for the industry increased 4% MoM to Rs 17300, flat YoY. The ticket size also declined to Rs 4,500, while the number of transactions per card increased to 3.8. The industry has seen a continuous decline from the base of Jan’24 owing to the lack of the festive season and cautious stance by some players amid asset quality issues. “We believe that June and July too will see tepid growth, and thereafter, the festive season will bring some improvement. Among players, IndusInd Bank and AMEX have the highest spending per card at INR31k and Rs 36,000, respectively,” MOSL said.

Among key players, the share in card spending stood at 25.1% for HDFC Bank (-103bp MoM), 19.4% for ICICI Bank (+60bp MoM), and 16% for SBI Card (+27bp MoM). Axis Bank’s share in card spending stood at 11.6% (-16bp MoM).

UPI payments grew 34.7% YoY

UPI continued to witness robust growth, with total payments growing 34.7% YoY to INR20.3 in May’24. The ticket size was broadly stable MoM at ~INR1,500. UPI’s market share has been constantly increasing and stood 86% in FY23 from a mere 9% in FY18 (81% in FY22).

  • Published On Jun 27, 2024 at 07:48 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETBFSI App

  • Get Realtime updates
  • Save your favourite articles

icon g play

icon app store


Scan to download App
bfsi barcode

Share it on social networks