Credit Card Spends Growth Slows Down In August: IDBI Capital

IDBI Capital Report

Total card spends declined during August 2024 (stood at Rs 1.69 lakh crore versus Rs 1.73 lakh crore during July 2024). Credit Card spends declined by 2.6% month-on-month (versus +8.7% in July 24) and the growth slowed down to ~13.2% YoY (versus 19.3% in July-24). Total number of cards in force stood at ~105.5 million as of Aug-24 (up by ~15.6% YoY and ~0.9% month-on-month).

Volume of transaction grew by ~1.6% month-on-month (versus ~7.2% in July-24), whereas it grew by ~34.2% YoY (versus ~38.4% in July-24). Further, Net New Cards additions increased during Aug-24 and stood at ~9.2 lakhs (versus ~7.6 lakh during July-24).

New cards issuance was led by HDFC Bank Ltd. (~2.42 lakhs), ICICI Bank Ltd. (~1.45 lakhs), Axis Bank Ltd. (~1.27 lakhs) and SBI (~1.10 lakhs).

Going forward, we expect card spends to improve in the coming months led by the festive season. However, delinquencies in the credit card receivables need to be closely watched.

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