India’s largest public sector lender, the State Bank of India, remained the front runner in the Debit cards market, holding a 24 per cent share in March 2024, 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, Bank of Baroda recorded the highest growth, of approximately 16 per cent year-on-year, while Axis Bank recorded 15 per cent growth and Canara Bank recorded 12 per cent growth. Thereafter, following the lead, Union Bank and HDFC Bank registered a growth of 8 per cent each.
Even though the State Bank of India retained its top position in the debit cards market, it registered a massive degrowth of about 17 per cent in March. Bank of India also registered a degrowth of 4 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 March, 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.
HDFC Bank dominates credit card market
India’s largest private 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 March, 2024, highlighted the 1Lattice data.
Maximum growth in this segment was seen by IndusInd Bank and Bank of Baroda with a 30 per cent yoy growth and 29 per cent yoy growth respectively, holding a market share of 3 per cent and 2 per cent respectively.
The list was followed by Kotak Mahindra Bank, RBL Bank, ICICI Bank and Axis Bank with a 21 per cent, 18 per cent, 17 per cent and 17 per cent yoy growth respectively and 6 per cent, 5 per cent, 17 per cent and 14 per cent market shares respectively, while SBI Cards registered a yoy growth of 13 per cent with 19 per cent market share, revealed the data.
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.
