India's Credit Card Market Surges to 119 Million, Public Sector Banks Gain Ground
India’s credit card market expands to 119 million, PSU banks gain in spends
The Economic Times
Image: The Economic Times
India's credit card market reached 119 million cards in March, with significant growth driven by public sector banks. HDFC Bank leads with a 22.2% market share in outstanding cards, while public sector banks saw an 11.3% year-on-year growth in card numbers, reflecting a shift in spending patterns.
- 01India's credit card market expanded to 119 million cards as of March.
- 02HDFC Bank increased its market share to 22.2%, leading in spending.
- 03Public sector banks recorded an 11.3% year-on-year growth in credit cards.
- 04Private banks' share of total spending fell to 72.6%, down 3.15 percentage points year-on-year.
- 05Average spending per card at private banks decreased by 4% to ₹18,948.
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As of March, India's credit card market has surpassed 119 million cards, marking an 8% year-on-year growth. HDFC Bank has solidified its position as the market leader, increasing its share of outstanding cards to 22.2% and its transaction value share to 29.8%. SBI Cards maintained a stable presence with 18.7% of cards in use and a transaction value share of 19.3%. In contrast, ICICI Bank and Axis Bank experienced slight declines in their market positions. Public sector banks have shown robust growth, with an 11.3% increase in outstanding cards, while private banks grew by 8.3%. Notably, public sector banks have improved their per-card spending by 17% to ₹16,847, attributed to enhanced customer engagement and the adoption of Unified Payments Interface (UPI)-linked credit. This shift highlights a growing trend in card penetration, particularly in tier-2 and tier-3 markets.
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The expansion of the credit card market may lead to increased consumer spending and access to credit, particularly benefiting those in tier-2 and tier-3 markets.
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