Indian banks have issued over 100 million credit cards
In a noteworthy development, the Reserve Bank of India (RBI) has reported that the number of credit cards issued by Indian banks, surpassed 100 million in February 2024. This signifies an increase of 1.1 million cards from January, bringing the total number of active credit cards to 100.6 million. The figures are much higher than those from February 2023.
Industry expert shares insights on credit card growth
Saurabh Bhalerao, Associate Director at CareEdge Ratings, attributed the rise in credit card circulation to proactive banking strategies and evolving consumer spending habits. However, he also predicted a potential slowdown in growth due to the industry's significant size. "The growth rate may slow down given that the industry has now reached a significant size," Bhalerao stated.
HDFC Bank leads in credit card issuance
HDFC Bank is at the forefront of this trend, with 20.40 million cards in circulation. Other major contributors to the credit card market, include SBI with 18.75 million cards, ICICI Bank with 16.84 million, and Axis Bank with 13.90 million cards issued as of February 2024. These banks collectively account for a significant portion of the total credit cards in circulation.
Credit card expenditure drops post-festive season
Despite the increase in card issuance, overall credit card expenditure among Indians fell to Rs. 1.49 trillion in February 2024 from Rs. 1.66 trillion in January. This decline is largely attributed to a decrease in point of sale (PoS) and e-commerce payments following the end of the festive season. Bhalerao explained this trend, stating, "As the season ends, it's natural for spending to moderate."
Major banks report decline in credit card transactions
Major credit card issuers have reported a decline in transactions for February 2024. HDFC Bank's transactions fell to Rs. 40,288.51 crore from Rs. 43,711.47 crore in January, while SBI saw a drop to Rs. 23,247.79 crore from Rs. 30,693.83 crore. ICICI Bank and Axis Bank also reported a decrease in transactions during this period, reflecting the overall trend of reduced spending post-festive season.
