26 June 2024
Digital Payments Tracker
Card Addition
(Nos. in ’000)
Total Industry
HDFCB
AXSB
SBI Cards
IDFC First
ICICIBC
Yes
IIB
BOB
RBK
Federal
SBM
AMEX
SCB
KMB
May'24
760.6
289.1
117.1
113.8
88.9
76.7
40.9
30.1
21.8
17.8
15.6
6.7
6.5
2.9
-64.7
YoY growth
(%)
-38
19
-40
-60
62
-25
-707
-44
-37
-54
-62
-131
18
-155
NA
Credit card industry adds ~0.76m cards in May’24
Outstanding card base grew ~18% YoY; spending rose 17% YoY
Total spends and YoY growth (%)
YoY growth
(INR b)
May'24
(%)
Total
1,654.0
17.3
HDFCB
415.4
3.1
ICICIBC
320.2
30.6
SBI Cards
264.3
10.8
AXSB
192.7
11.1
IIB
82.5
15.2
RBK
75.2
24.2
KMB
73.6
42.7
AMEX
48.5
23.7
IDFC First
30.1
52.1
Yes
26.5
54.4
BOB
25.4
30.0
Federal
16.6
42.5
SCB
11.1
0.4
SBM
1.4
-6.4
Outstanding card base and YoY
growth (%)
YoY growth
(Nos. in m) May’24
(%)
Total
103.3
17.7
HDFCB
21.1
16.5
SBI Cards
19.1
11.5
ICICIBC
17.1
16.4
AXSB
14.3
15.0
KMB
5.9
16.0
RBK
5.2
14.7
IIB
3.0
27.5
IDFC First
2.7
68.8
BOB
2.6
30.1
Yes
2.2
48.4
AMEX
1.4
1.0
SCB
1.0
-2.5
Federal
1.0
55.4
SBM
0.9
-11.9
Source: MOFSL, RBI
The credit card industry added ~0.76m cards in May’24 (~0.74m in Apr’24 and ~1.2m in
Mar’24). Among large players, HDFCB witnessed highest growth, followed by AXSB,
SBICARD, IDFCB and ICICBC. The outstanding credit card base has thus increased to
103m, up 18% YoY.
During May’24, HDFCB added the highest number of new cards at ~289k, followed by
AXSB at ~117k, SBICARD at ~114k and ICICIBC at ~77k. KMB saw a sharp decline amid
RBI restrictions. Among emerging players, IDFCB reported strong growth at ~89k cards
during the month, taking its total card base to 2.7m.
Card spending grew 17% YoY to INR1.65t. Among key players, KMB, ICICIBC, SBICARD
and HDFCB witnessed 43%, 31%, 11%, and 3% YoY growth, respectively. IDFCF and FB
reported faster growth of 52% and 43% YoY, respectively.
Among key players, the share in card spending stood at 25.1% for HDFCB (-103bp
MoM), 19.4% for ICICIBC (+60bp MoM), and 16% for SBICARD (+27bp MoM). AXSB’s
share in card spending stood at 11.6% (-16bp MoM).
In terms of CIF market share, small and emerging players (IDFCB, BOB, IIB, FB) have
gained market share, while large players have been cautious with unsecured loans,
resulting in a slight decline in market share. HDFCB remains the largest player with an
outstanding card market share of 20.4%.
Outstanding credit card base grew ~18% YoY to 103m
The total number of outstanding credit cards in the system grew 17.7% YoY to
103.3m in May’24. Among key players, IIB and BOB reported strong YoY growth (up
27.5%/30.1%, albeit on a low base), followed by HDFCB (up 16.5%), ICICIBC (up
16.4%), KMB (up 16%), AXSB (up 15%), RBK (up 14.7%) and SBICARD (up 11.5%).
Among foreign players, Standard Chartered (SCB) witnessed a 2.5% YoY decline,
while AMEX grew 1.0% YoY. In terms of CIF market share, small and emerging
players (IDFCB, BOB, IIB, FB) have gained market share, while large players have
been cautious with unsecured loans, resulting in a market share decline for
SBICARD, AXSB, HDFCB, and ICICI by 102bp, 33bp, 22bp, and 19bp YoY to 18.5%,
13.9%, 20.4%, and 16.5%, respectively.
System added 0.76m cards in May’24; HDFCB added the highest number of
cards
The industry saw a net addition of ~0.76m credit cards in May’24 (~0.74m in
Apr’24), led by healthy traction by HDFCB, ICICIBC, AXSB, and SBICARD. HDFCB
added the highest numbers of new cards (~289k), followed by AXSB (~117k),
SBICARD (~114k), ICICIBC (~77k), IIB (~30k) and RBK (18k). KMB witnessed a sharp
decline of ~65k amid RBI restrictions. Among emerging players, IDFCB reported
strong growth of ~89k during the month, thus taking its total card base to 2.7m.
Card spending grew 17% YoY to INR1.65t
Card spending grew 17% YoY (5% MoM growth) to INR1.65t in May’24 (47% growth
on a three-year CAGR basis). Among the top players, KMB, ICICIBC, SBICARD, and
HDFCB clocked YoY growth of 43%, 31%, 11%, and 3%, respectively. IDFCB and FB
reported faster growth of 52% and 43% YoY, respectively. On a three-year basis,
spending for the industry recorded a CAGR of 47%, led by healthy growth for all
large players (40%-65% range). Among foreign players, SCB declined 1.2% MoM,
while AMEX grew 8% MoM.
Nitin Aggarwal - Research Analyst
(Nitin.Aggarwal@MotilalOswal.com)
Research Analyst: Dixit Sankharva
(Dixit.sankharva@MotilalOswal.com)
|
Disha Singhal
(Disha Singhal@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
26 June 2024
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