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    Credit card issuance at 6-month low but July spends up; HDFC Bank reigns supreme

    Credit card issuance at 6-month low but July spends up; HDFC Bank reigns supreme

    Credit card issuance at 6-month low but July spends up; HDFC Bank reigns supreme
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    By CNBCTV18.com  IST (Published)

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    With the festive season coming up, HDFC Bank continued to gain market share in both spends and card issuances. Among the losers in the last 4 months were SBI, Citibank, American Express and Standard Chartered Bank.

    The credit cards business staged a mixed show in July. While credit card issuance growth fell to a six-month low month on month (MoM), there was a pick-up in spends. However, the average ticket size was lower than in May. With the festive season coming up, spends can increase from current levels.
    HDFC Bank continued to gain market share in both spends and card issuances. In the last four months, it consistently maintained or improved its market share in spends which stood at 28.4 percent in July 2022 versus 27.2 percent in June 2022.
    SBI continued to see a decline in spends market share for the second month in a row. Along with it, there was loss of market share in spends in the last four months for Citibank, American Express and Standard Chartered Bank, according to the data for July. On the other hand, ICICI bank has been gaining market share, over the last two months.
    HDFC Bank, ICICI Bank, Kotak Mahindra Bank and SBM Bank saw the highest market share gain in spends over the last four months . Even though at the industry level, credit card issuance growth (MoM) was the lowest in the last six months, spends increased by 6.5 percent (MoM).
    The spends per card increased by 4.5 percent MoM to Rs 14,478 crore, but remained below the May average of Rs 14,832 crore. The decline in average spends is a matter of concern but it can pick up in the coming months, due to the festive season.
    Among the top movers, in terms of issuance of cards (MoM), the gainers were DBS bank, SBM Bank, AU Small Finance Bank, South Indian Bank and Federal Bank, while the losers were Indusind Bank, Bank of India, City Union Bank, DCB Bank and Canara Bank.
     
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