The credit card business momentum picked up in May 2023, owing to the holiday season. However, the growth rate in spends per card has been the lowest in 6 months, on a year on year basis.
For the sector, the credit cards in force grew by 14.14 percent year on year and 1.43 percent month on month, while total spends grew 23.7 percent year on year and 5.9 percent month on month. The spends per card in May grew 8.4 percent year on year, the lowest in 6 months and 4.44 percent month on month.
In May 2023, based on the number of cards, the market share of top 4 players stood at 71.12 percent versus 71.19 percent month on month. However, based on the number of cards, the market share of top 4 players stood at 71.12 percent versus 71.19 percent month on month. HDFC Bank’s market share in spends has remained stable, while there is an improvement for ICICI Bank and Axis Bank. Although, SBI Cards saw sharp decline in its mkt share, owing to lower corporate spends, as per analysts.
The credit card spends have picked up due to holiday season, with SBI card losing out on spends due to corporate sector. In recent developments, Apple is planning to launch credit cards, partnering HDFC Bank.
