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 February 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, Axis Bank recorded the highest growth, of approximately 18 per cent year-on-year, while Bank of Baroda recorded 16 per cent growth and Union Bank and Canara Bank recorded 14 per cent growth each. Thereafter, following the lead, HDFC Bank registered a growth of 6 per cent.
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 February. Punjab National Bank also registered a degrowth of about 3 per cent, while ICICI Bank registered a degrowth of 1 per cent on a yoy basis as of February, 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 February, 2024.
Maximum growth in this segment was seen by Axis Bank and IndusInd Bank with a 42 per cent yoy growth and 28 per cent yoy growth respectively, holding a market share of 14 per cent and 3 per cent respectively. The list was followed by Kotak Mahindra Bank and ICICI Bank with a 24 per cent and 23 per cent yoy growth respectively and 6 per cent and 17 per cent market share respectively, while RBL Bank and SBI Cards registered a yoy growth of 18 per cent and 14 per cent respectively.
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.
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