Credit card
Credit card expenditures increased by 27% year-on-year (Y-o-Y) to Rs 18.26 trillion in the financial year 2023-24 (FY24) from around Rs 14 trillion in the previous year, as indicated by the most recent data provided by the Reserve Bank of India (RBI). In March 2024, expenditure saw a rise of approximately 10.07% to Rs 1.64 trillion from Rs 1.49 trillion in February. This growth can be attributed to the closure of the financial year and festive sales during March.
Saurabh Bhalerao, associate director at CareEdge Ratings, suggested, “The surge in transactions during March was probably fueled by both the festival season and the year-end closing. While credit card spending is expected to keep increasing, it may slow down due to a stronger starting point and increased regulatory oversight.”
Out of the total credit card transactions amounting to Rs 1.64 trillion, point of sale (PoS) transactions in the country increased to Rs 60,378 crore in March from Rs 54,431.48 crore in February. In parallel, e-commerce payments saw a slight rise to Rs 1.05 trillion from Rs 95,000 crore.
Among the leading card issuers, the usage of HDFC Bank’s credit cards amounted to Rs 43,471.29 crore in March, marking an increase of 8.57% compared to Rs 40,288.51 crore in February. Similarly, Axis Bank observed an 8.05% growth in transactions, reaching Rs 18,941.31 crore in March from Rs 17,528.97 crore in February. Additionally, spending on ICICI Bank’s credit cards surged by 14.49% to Rs 30,733.11 crore in March from Rs 26,843.03 crore in February.
Furthermore, SBI Card witnessed a 7.32% increase in transactions, reaching Rs 24,949.17 crore.
The overall count of credit cards issued by banks in India grew to 101 million in March 2024, compared to 100.60 million at the conclusion of February 2024.
HDFC Bank maintains its position as the leader in credit card issuance, with the bank having 20.59 million cards in circulation. Other prominent players include SBI Card with 18.89 million cards, ICICI Bank with 16.95 million, and Axis Bank with 14.21 million cards.
