Credit card spending in March 2022 jumped 48% year-on-year to reach 1 trillion rupees – five months after hitting the same figure for the first time in October 2021, boosted by spending on the holiday season.
The jump was driven by the recovery in consumption as the pandemic recedes.
Spending in March, at 1.07 trillion rupees, was up 24.5% from February, according to data released by the Reserve Bank of India (RBI).
Additionally, more than 1.9 million credit cards (on a net basis) were added in March – the highest for a month in FY22, bringing the number to 73.6 million at the end of the year. ‘practice.
Thus, in one year, 11.6 million credit cards were added (on a net basis). Month over month, credit card additions (on a net basis) were up 31.7%.
“March is historically a strong month. However, the spending pull is expected to continue,” said an analyst who tracks the numbers.
“We see consumption increasing as Covid-19 recedes,” Anup Bagchi, chief executive, ICICI Bank, had said in an earnings call last month.
HDFC Bank, the country’s largest credit card issuer, saw its market share in this segment increase from 25.7% in February to 26.6% in March, while for ICICI Bank it fell slightly to 19.4%.
On the other hand, SBI Cards increased its market share to 19.1 percent.
“HDFC Bank and SBI Cards both saw strong increases in spend market share. Since spending usually comes with a lag of around 6-9 months, HDFC Bank’s ban revocation in August 2021 finally allowed them to see a recovery in spending market share over the past two quarters, which is encouraging,” said Macquarie Research. in a report.
In credit card net addition, Axis Bank, the fourth largest player in the space, added the highest number at 433,966 among top issuers, followed by HDFC Bank with 263,864, SBI Cards with 245,133 and ICICI Bank with 205,360.
The net addition accelerated after the RBI at the end of August last year lifted the ban on HDFC Bank on issuing new credit cards. It added (on a net basis) nearly 1.8 million cards between September 2021 and March 2022.
During the same period, SBI Cards added 1.36 million, ICICI Bank 1.52 million and Axis Bank 1.72 million.
“There has been a sharp increase in card additions by players outside the top 8, which has quadrupled additions since September 2021 and a strong improvement of Rs 100bps in market share (both in spending and in card additions). A closer look reveals that BOB Cards, IDFC First Bank, IndusInd Bank and Federal Bank contributed to the increase in card additions,” the report adds.