According to data from the Reserve Bank of India, credit card transactions increased by around 18% year over year (y-o-y) to Rs1.57 trillion in April. The total amount spent on cards was somewhat less than the Rs 1.65 trillion recorded in March.
The average monthly spending per card decreased to Rs 15,307 in April, a 5.5% monthly (m-o-m) decrease. The average spending per card decreased by 0.5% as compared to the same time last year.
An rise in internet transactions propelled credit card spending in April. While spending at point-of-sale terminals jumped 20% year over year to Rs 61,982 crore, transactions on e-commerce platforms increased 16.5% year over year to Rs 94,516 crore in April. The total amount of money taken out of automated teller machines (ATMs) was around Rs 458 crore.
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As of April 30, there were 102.5 million active cards, up 18.5% year over year from 101.8 million on March 31.
Due to significant flaws and violations in its technological infrastructure, the Reserve Bank of India ordered Kotak Mahindra Bank to cease onboarding new clients through its online and mobile banking channels and issuing new credit cards in April. In spite of this, the bank’s proportion of credit card spending increased slightly, from 4.4% on March 31 to 4.5% on April 30. In February, the lender’s stake was 4.1%; a year earlier, it was 3.7%.
The market share of outstanding cards held by Kotak Mahindra Bank increased from 5.8% on March 31 to 5.9% as of April 30. In February, the market share was 6%, while a year before, it was 5.8%.
In terms of both outstanding cards and card spends, HDFC Bank continued to lead the industry. Nevertheless, its market share for spending decreased to 26.1% in April from 28.6% in the previous year, and its market share for cards decreased to 20.3% from 20.7% in the previous year.
State Bank of India (SBI) ranked second in terms of card issuances, but ICICI Bank held the second position in terms of market share in spending.
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