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Motilal Oswal Report
The credit card industry added ~0.76 million cards in May 2024 (~0.74 million in April 2024 and ~1.2 million in March 2024). Among large players, HDFC Bank Ltd. witnessed highest growth, followed by Axiz Bank Ltd., SBI Cards and Payment System Ltd., IDFC Bank Ltd. and ICICI Bank Ltd.
The outstanding credit card base has thus increased to 103 million, up 18% YoY.
During May-24, HDFC Bank added the highest number of new cards at ~289,000, followed by Axis Bank at ~117,000, SBI Cards at ~114,000 and ICICI Bank at ~77,000. Kotak Mahindra Bank Ltd. saw a sharp decline amid RBI restrictions.
Among emerging players, IDFC Bank reported strong growth at ~89,000 cards during the month, taking its total card base to 2.7 million.
Card spending grew 17% YoY to Rs 1.65 trillion. Among key players, Kotak Mahindra Bank, ICICI Bank, SBI Card and HDFC Bank witnessed 43%, 31%, 11%, and 3% YoY growth, respectively. IDFC Bank and Federal Bank reported faster growth of 52% and 43% YoY, respectively.
Among key players, the share in card spending stood at 25.1% for HDFC Bank (-103 bp month-on-month), 19.4% for ICICI Bank (+60 bp month-on-month), and 16% for SBI Card (+27bp MoM). Axis Bank's share in card spending stood at 11.6% (-16bp month-on-month).
In terms of CIF market share, small and emerging players (IDFC Babk, Bank of Baroda, IndusInd Bank, Federal Bank) have gained market share, while large players have been cautious with unsecured loans, resulting in a slight decline in market share. HDFC Bank remains the largest player with an outstanding card market share of 20.4%.
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