Home >News >India >Credit card growth in August highest in past 10 months: Report
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The total number of outstanding credit cards in the system increased 10.6% year-on-year to 63.9 million in August, the highest in the last ten months, according to digital payments tracker from Motilal Oswal Financial Services (MOFSL).

MOFSL said, among major players, ICICI Bank reported strong growth at 25% YoY, and SBI Card at 14.6%. Foreign players like Citi/American Express witnessed a 5%/10% decline. SBI Card and ICICI Bank continued to witness strong performance, resulting in a 69-205bps YoY increase in market share to 19.4% and 17.9% respectively. HDFC Bank continued to be the largest player with a market share of 23.1%.

About 5.2 lakh cards were added to the system in August. ICICI, SBI Card, Axis Bank introduced 219000, 163000, 83000 cards.

Growth in credit card spends moderated to 4% month-on-month to 780 billion in August. However, the same grew strongly at 54% YoY. 

The industry's monthly spends per card surged to 12200, up from an average of 10700 in the previous six months. This was attributable to a jump in the number of transactions per card to 3 from 2.5 in the previous three months.

The ticket size remained consistent at 4,080, which was greater than the levels seen in March. Most players experienced an increase in spends per card of up to 9000. 

UPI continued to witness robust growth, with total payments growing around 114% YoY in August to 6.4 trillion. Ticket size in UPI though moderated slightly to 1,798 from 1,867 seen in July. The market share of UPI has been constantly increasing and stood around 80% over five months in FY22, while the share of debit/credit cards stood at 8-10%. Credit card spends is witnessing a strong recovery over the past few months. Increased economic activity, coupled with the festive season, would enable spends to grow at a healthy pace over the medium term, as per the report.

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