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 December 2023, 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 recorded the highest yoy growth, of approximately 20 per cent, while Union Bank and Bank of Baroda recorded 18 per cent and 17 per cent growth respectively. Thereafter, following the lead, Canara Bank and HDFC Bank registered a growth of 15 per cent and 8 per cent respectively.
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 December. Punjab National Bank also registered a degrowth of about 2 per cent, while ICICI Bank had no growth on yoy basis as of December, 2023, 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 December, 2023.
Maximum growth in this segment was seen by Axis Bank and Bank of Baroda with a 44 per cent yoy growth and 37 per cent yoy growth respectively, holding a market share of 14 per cent and 2 per cent respectively. The list was followed by IndusInd Bank with a 32 per cent yoy growth and 3 per cent market share, while ICICI Bank and Kotak Mahindra Bank registered a yoy growth of 22 per cent each with 17 and 6 per cent market share respectively.
The 1Lattice data further revealed that the global leaders performed below expectations in credit cards segment, with American express registering 3 per cent year-on-year growth, however it was higher compared to the previous few months. It held a market share of only 1 per cent.
