Credit Card Spends: After the festive season, Indians are reluctant to spend on credit cards this year
Credit Card Spends In January-February: After the holiday season, credit card spending has decreased. According to a report, credit card spending in the country will be in the range of Rs 84,000 crore to Rs 88,000 crore in January and February, significantly lower than the December quarter.
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After the festive season, Indian consumers are spending less on their credit cards. ICICI Securities said that total credit card spending in the country in January and February is expected to be in the range of Rs 84,000 crore to Rs 88,000 crore, which is much lower than December.
So much expenditure in the December quarter of 2021
The report shows that credit card users in the country spent a total of Rs 94,700 crore in the December quarter. Despite more than one and a half months have passed since the beginning of this year, brokerage house data shows that consumers have spent Rs 76,700 crore on credit cards so far this year. The credit card to debit card spend ratio was 1.39 times in December 2021, the highest since April 2019.
HDFC leads in card issuance
In terms of credit card issuers, HDFC Bank holds the lead with a 25.1% market share in December. In second place were State Bank of India (SBI) cards, which had a share of 19.8%. The credit card outstanding (CIF) per card at the industry level was Rs 18,069 as of December 2021.
ICICI’s strong performance
ICICI Bank grew fastest among credit card issuers, followed by Axis Bank and Kotak Mahindra Bank. Additionally, American Express and Citi India declined by 11 percent and 5 percent, respectively. Motilal Oswal believes that SBI Cards, ICICI Bank, and Axis Bank will continue to outperform while HDFC Bank Credit Cards will continue to grow.