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 June 2024 while in credit cards HDFC Bank maintained the top position with a 21 per cent market share, revealed latest data by 1Lattice.
Top banks followed the list in Debit cards 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 14 per cent and 13 per cent respectively on a year-on-year basis, while HDFC Bank recorded 10 per cent yoy growth. Thereafter, following the lead, Canara Bank and Union Bank registered a growth of 9 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 14 per cent in June.
Bank of India also registered a degrowth of 9 per cent while Punjab National Bank registered a degrowth of about 3 per cent and ICICI Bank registered a degrowth of 2 per cent on a yoy basis as of June, 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 21 per cent market 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 June, 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 29 per cent yoy growth and 25 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 ICICI Bank with a growth of about 17 per cent while HDFC Bank and ICICI Bank followed with a 16 per cent yoy growth each.
RBL Bank further followed with 14 per cent yoy growth and 5 per cent market share and SBI Cards with 11 per cent yoy growth and 19 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.
