Indian Credit Card Market Slows Down in August 2024
HDFC and ICICI Banks Gain, SBICARD Slips
In August 2024, the Indian credit card market experienced a slowdown. Spending per card decreased by 3.4% month-on-month, while receivables per card rose by only 0.2%. The total number of cards-in-force grew by 0.9% to 105.5 million, marking a yearly growth of 15.6%, but this was a decline from July’s 16.4% growth rate.
SBICARD’s market share slipped slightly to 18.4% from 18.5% in previous months due to a cautious approach toward new accounts. HDFC Bank maintained a dominant 20.8% share, up from 20.4% in May, while ICICI Bank held 16.6% of the market, down slightly from July’s 16.7%. Axis Bank held a stable 14.0% market share.
Credit card receivables grew 23% year-on-year in the first quarter of FY25, lagging behind unsecured loan growth of 26% but outpacing systemic credit growth of 17%. Overall industry spending grew 13.2% year-on-year in August but saw a 2.6% month-on-month decline due to subdued post-election market conditions.
SBICARD registered a 3.4% year-on-year drop in spending and a 1.5% month-on-month decline, driven by a fall in corporate spending and regulatory changes affecting B2B payments. HDFC Bank and ICICI Bank performed better, with ICICI Bank’s spending per card increasing by 22.3% year-on-year. SBICARD’s market share in terms of spending fell to 15.7% in August from 15.6% in July. HDFC Bank held the largest share of industry spend at 25.8%, while ICICI Bank’s market share remained strong at 19.3%.
Doubts Revealed
Credit Card Market -: This is the market where people use credit cards to buy things and pay later. It includes all the banks and companies that issue these cards.
HDFC Bank -: HDFC Bank is one of the largest banks in India. It offers many financial services, including credit cards.
ICICI Bank -: ICICI Bank is another big bank in India. It also provides various financial services like loans and credit cards.
SBICARD -: SBICARD is the credit card division of the State Bank of India (SBI). It issues credit cards to SBI customers.
Receivables per card -: This means the amount of money that people owe to the bank on their credit cards.
Market share -: Market share is the percentage of the total market that a company or bank controls. For example, if a bank has a big market share, it means many people use its credit cards.
Year-on-year -: This compares data from one year to the same time in the previous year. For example, comparing August 2024 to August 2023.
Month-on-month -: This compares data from one month to the previous month. For example, comparing August 2024 to July 2024.
