For the first time, credit card spending crosses US$ 17.07 billion (Rs. 1.4 trillion) mark in May: RBI data
- IBEF
- July 14, 2023
After remaining range-bound in 2022-23 (FY23), credit card expenditure reaches US$ 17.07 billion (Rs. 1.4 trillion) for the first time in May, according to the latest Reserve Bank of India (RBI) data.
The overall number of credit cards in circulation grew to 87.4 million in May, an all-time record, up from 86.5 million in April. Almost 2 million cards were added during the first two months of the fiscal year.
According to a study by ICICI Securities, "Credit card spends were in the range of US$ 13.14-14.63 billion (Rs. 1.1-1.2 trillion) throughout FY23 but touched US$ 17.07 billion (Rs. 1.4 trillion) for the first time in May 2023". In May, the average spend per card was US$ 196.85 (Rs. 16,144).
HDFC Bank, India's largest private sector lender, has the most cards in circulation, with 18.12 million in circulation in May and a 28.5% market share in spending. HDFC Bank is followed by SBI Card (17.13 million cards), ICICI Bank (14.67 million) and Axis Bank (12.46 million). Axis Bank has closed the gap with ICICI Bank after taking over Citibank. According to RBI data, Citi held 162,150 cards in May.
According to the ICICI Securities report, credit card spends per card per month climbed by 5% month on month for the sector in May 2023, following a 5% decrease in April.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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