Banking industry’s net addition of credit cards in June 2024 was at its slowest pace since October 2022. While HDFC Bank and Kotak Mahindra Bank continued to lose market share in credit cards in force (CIF), Axis Bank lost volumes and value, according to a report by brokerage firm Anand Rathi.
The industry added 0.51 million credit cards in the month of June, a drop of 33% from 0.76 million cards added in May 2024. The card addition declined by 45% when compared with 0.93 million in June 2023.
“This is the lowest figure since October 2022. With net additions lower than in May, the industry saw cards in force increase 17% YoY in June," the Anand Rathi report said.
Card spending value growth at ₹1.58 lakh crore fell to 15.7% in June 2024 from 26.2% YoY. Card spend volumes in June grew 36.2% YoY to ₹357 lakh crore. Composition of value between PoS and e-commerce changed 200 bps, with the latter getting a higher share of 63% versus 61% in May, and the former at 37% versus 39% the month prior.
SBI Cards and Payment Services’ CIF market share declined 102 bps YoY to 18.5%, its lowest since August 2022. However, it witnessed 3 bps gains MoM. HDFC Bank and ICICI Bank gained 11 bps and 10 bps MoM, while Kotak Mahindra Bank lost 43 bps MoM CIF market share. IndusInd Bank, American Express (AMEX) and Standard Chartered Bank largely kept their market shares intact, the report showed.
HDFC Bank is the market leader with a 26.1% market share, despite a 211 bps YoY decline. ICICI Bank saw the highest increase in spends value market share, 241 bps YoY, and a 19.2% market share. On the other hand, Axis Bank lost a significant 48 bps MoM spends value market share, seeing the highest loss in this category, data showed.
IDFC First Bank gained market share in CIF and spends volume, with an 82 bps YoY market share and 116 bps YoY spends volume. While AMEX and IIB lost 22 bps and 12 bps MoM, respectively, Shares of other PSBs were largely stable.
HDFC Bank remains the leader in volume market share at 26%, registering an increase of 100 bps YoY and 15 bps MoM. Axis Bank lost significantly in this category with a drop of 258 bps YoY and 82 bps MoM. ICICI Bank and SBI Card lost 17 bps and 7 bps on a month-on-month basis, respectively, the report said.
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