Credit card spending drops, top four lose market share

Among the four major credit card issuers, HDFC Bank customers spent the most in April, while SBI Card, ICICI Bank and Axis Bank reported a sequential decline in customer spending, according to the latest data. of the Reserve Bank of India (RBI).

HDFC Bank gained the largest market share in customer spending from January to March, rising from 24.8% to 27.6%. It was then that the other three lost market share in customer spending. Against 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

But although HDFC Bank customers spent the most and the lender continued to be the leader in market share of credit cards issued, the number of cards issued fell for the fourth consecutive month.

The upward momentum in credit card issuance continued for the 10th consecutive month for Axis Bank. The other two of the four major issuers, ICICI Bank and SBI Card, also issued smaller credit cards for the fourth consecutive month. The market share of the four main issuers was 70.74% in terms of credit card issuance in April 2022 compared to 71.83% in December 2021.

Industry

The credit card is the most profitable activity for banks because the interest rates are very high, equal to and greater than 30%.

Overall, the number of credit cards increased month over month, but spending fell in April compared to an increase in March. This, although April has more holidays than the previous month. Card spending also fell in April compared to an increase in March.

First post: 09 June 2022, 13:47 STI