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Credit card spends dip, top four lose market share

Credit card spends dip, top four lose market share

Credit card spends dip, top four lose market share
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By Abhishek Kothari  Jun 9, 2022 4:45:05 PM IST (Updated)

Overall, the number of credit cards increased month-over-month, but spending declined in April versus an increase in March, as per RBI data.

Of the top four credit card issuers, HDFC Bank customers spent the most in April, whereas SBI Card, ICICI Bank, and Axis Bank reported a sequential drop in customer spending, latest Reserve Bank of India (RBI) data has shown.

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HDFC Bank gained the most market share in customer spending from January to March, from 24.8 percent to 27.6 percent. This was when the other three lost market share in customer spending. Versus 280 basis points (bps) gained by HDFC Bank, ICICI Bank lost 181 bps, SBI Card lost 142 bps, while Axis Bank lost only 3 bps.
Market share in credit card issuance
BankApril'22 Mar'22 Feb'22 Jan'22
HDFC Bank22.40 22.4622.6922.97
SBI Card18.5518.7018.8619.09
ICICI Bank17.4717.6317.8117.92
Axis Bank 12.32 12.2711.9911.80
But though HDFC Bank customers spent the most and the lender continued to be the leader in terms of the market share in credit cards issued, the number of cards being given out declined for the fourth month in a row.
Upward momentum in issuing credit cards continued for the 10th month in a row for Axis Bank. The other two of the top four issuers, ICICI Bank and SBI Card, also issued lesser credit cards for the fourth month in a row. The top four issuers’ market share was at 70.74 percent in terms of credit card issuance in April 2022 versus 71.83 percent as of December 2021.
Industry
Credit card is the most profitable business for banks as interest rates are very high, at and above 30 percent.
Overall, the number of credit cards increased month-over-month, but spending declined in April versus an increase in March. This, despite April having more holidays than the previous month. Spends per card also declined in April against a rise in March.
MoM growth in %April'22Mar'22Feb'22Jan'22
Number of credit cards2.092.682.071.89
Total spends-1.5724.49-1.97-6.54
Spends per card-3.5821.25-3.96-8.28
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