The Reserve Bank of India recently released credit card data for June 2023, revealing that the total number of active credit cards in India increased from 8,77,47,311 at the end of May 2023 to 8,86,82,356 in June 2023, representing an increase of 9,35,045 cards.
Here is a graphic illustrating the market share of credit cards:
This may indicate that 9,35,045 new credit cards were issued by credit card issuers in india during that month. However, we should also consider attrition. If the attrition rate is 1% (which is the industry average), then approximately 8,77,000 more credit cards have been issued. Therefore, approximately 18.12 lakhs credit cards have been issued in June 2023, which is approximately 3 lakhs less than last month (May, 2023).
The above graphic clearly shows the issue with SBM Bank, as they have lost the highest number of credit card customers, losing more than 1.19 lakhs customers. On the other hand, HDFC Bank has emerged as the leader in acquiring new credit card customers, followed by SBI Card. Last month, SBI Card managed to issue more credit cards than HDFC Bank, but in June, HDFC Bank reclaimed the top position. Interestingly, despite all the hype on social media because of their Magnus credit card, Axis Bank has only issued 42,914 credit cards. In May 2023, Axis issued 196,395 credit cards, but in June, they issued 1,53,481 fewer credit cards. HSBC and Standard Chartered lost more customers in June than they did in May, which is concerning for them as they continue to lose customers every month.
In terms of spending, the total credit card expenditure in June 2023 amounted to Rs. 1,369,088,994,000. This was slightly lower compared to May 2023, which had a total expenditure of Rs. 1,406,592,598,000. The total credit card expenditure in June decreased by Rs. 37,503,604,000.
To provide a visual representation, I have included a graphic showcasing the top 10 banks based on credit card spending:
Total Spends Breakup: Online And Offline
Lets check per card spends for top 10 card issuers in India:
In terms of per credit card spends, IndusInd Bank is in the top position with Rs. 27,990 per card spent, which is a very surprising figure. Amex is in the second position with Rs. 26,404, and HDFC Bank is in the third position with Rs. 21,097 spends per card.
I'm very surprised by the figures for June 2023. Axis Bank has underperformed in all aspects by a significant margin if we compare the May and June figures. On the other hand, SBI Card is performing well and giving tough competition to the giant HDFC Bank. SBI Card is just 10.07 lakhs credit cards away from surpassing HDFC Bank.
The Indian credit card market is dominated by the top 4 credit card issuers in the country. These top four credit card issuers together have issued almost 72% of the total credit cards in India.
Here is a graphic illustrating the market share of credit cards:
This may indicate that 9,35,045 new credit cards were issued by credit card issuers in india during that month. However, we should also consider attrition. If the attrition rate is 1% (which is the industry average), then approximately 8,77,000 more credit cards have been issued. Therefore, approximately 18.12 lakhs credit cards have been issued in June 2023, which is approximately 3 lakhs less than last month (May, 2023).
The above graphic clearly shows the issue with SBM Bank, as they have lost the highest number of credit card customers, losing more than 1.19 lakhs customers. On the other hand, HDFC Bank has emerged as the leader in acquiring new credit card customers, followed by SBI Card. Last month, SBI Card managed to issue more credit cards than HDFC Bank, but in June, HDFC Bank reclaimed the top position. Interestingly, despite all the hype on social media because of their Magnus credit card, Axis Bank has only issued 42,914 credit cards. In May 2023, Axis issued 196,395 credit cards, but in June, they issued 1,53,481 fewer credit cards. HSBC and Standard Chartered lost more customers in June than they did in May, which is concerning for them as they continue to lose customers every month.
In terms of spending, the total credit card expenditure in June 2023 amounted to Rs. 1,369,088,994,000. This was slightly lower compared to May 2023, which had a total expenditure of Rs. 1,406,592,598,000. The total credit card expenditure in June decreased by Rs. 37,503,604,000.
To provide a visual representation, I have included a graphic showcasing the top 10 banks based on credit card spending:
Total Spends Breakup: Online And Offline
Lets check per card spends for top 10 card issuers in India:
In terms of per credit card spends, IndusInd Bank is in the top position with Rs. 27,990 per card spent, which is a very surprising figure. Amex is in the second position with Rs. 26,404, and HDFC Bank is in the third position with Rs. 21,097 spends per card.
I'm very surprised by the figures for June 2023. Axis Bank has underperformed in all aspects by a significant margin if we compare the May and June figures. On the other hand, SBI Card is performing well and giving tough competition to the giant HDFC Bank. SBI Card is just 10.07 lakhs credit cards away from surpassing HDFC Bank.
The Indian credit card market is dominated by the top 4 credit card issuers in the country. These top four credit card issuers together have issued almost 72% of the total credit cards in India.
