HomeFinance NewsCredit card spending in April rises 25.87%, but monthly growth lowest in 13 months

Credit card spending in April rises 25.87%, but monthly growth lowest in 13 months

The total number of cards issued grew by 15.1 percent year-on-year, which may seem positive, but it actually represents the lowest growth rate in the past 13 months. On a month-on-month basis, the growth rate of card issuances remained healthy at 1.42 percent, although it decreased slightly from the 2.32 percent growth recorded in March 2023.

By Abhishek Kothari  May 31, 2023, 3:49:08 PM IST (Updated)

Credit card spending witnessed a lackluster performance in April 2023, being the lowest in past thirteen months or more. Additionally, the growth rate of card issuances, when compared year-on-year, was the lowest in the past five months. Credit card spending, however, increased by 25.87 percent year-on-year, reaching Rs 1.3 lakh crore.



There was a decline of 3.3 percent in total spends on a month-on-month basis, contrasting with the significant 15.7 percent month-on-month growth witnessed in March 2023.

The total number of cards issued grew by 15.1 percent year-on-year, which may seem positive, but it actually represents the lowest growth rate in the past 13 months. On a month-on-month basis, the growth rate of card issuances remained healthy at 1.42 percent, although it decreased slightly from the 2.32 percent growth recorded in March 2023.



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The average spend reached Rs 15,388, marking a 25.9 percent year-on-year increase but a 4.7 percent decline on a month-on-month basis. Notably, the average spend growth rate has now entered single digits for the first time since the COVID-19 pandemic. Moreover, in terms of value, the average spend was the second-lowest in the past five months.

Looking at the top performers in April 2023, the market share of the top four players in the credit card industry stood at 71.19 percent, slightly lower than the 71.37 percent recorded on a month-on-month basis. In terms of spends, the market share for the top four players reached 75.68 percent, an increase from 74.74 percent in the previous month.



Among the top four players, HDFC Bank experienced a market share gain of 118 basis points in spends, reaching 28.6 percent, which is the highest in the past five months. SBI Card also saw a market share increase of 36 basis points, while ICICI Bank lost 38 basis points and Axis Bank lost 21 basis points in market share, both on a month-on-month basis.



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Only four out of 33 players witnessed a month-on-month increase in spend per card. At the industry level, average spends declined for the fourth time in six months. Despite healthy month-on-month credit card issuances, spends did not gain much traction.



On a year-on-year basis, companies such as SBM Bank India, Standard Chartered Bank, IDFC First Bank, and ICICI Bank experienced losses.

On a month-on-month basis, the top losers included CSB Bank, Indusind Bank, and Federal Bank. SBM Bank India saw a significant decline in spends, plummeting by 90.2 percent year-on-year and 77.6 percent month-on-month.

Other lenders, namely Standard Chartered Bank, IDFC First Bank, IDBI Bank, Tamilnadu Mercantile Bank, and ICICI Bank witnessed a decline in average spends, both year-on-year.

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Looking ahead, the credit card industry continues to witness strong month-on-month growth in card issuances. As we enter the month of May, there is a possibility of healthier spending patterns, driven by the occurrence of holidays. However, it is important to keep an eye on the declining trend of revolver rates, which affects the entire sector.