23 August 2018 The credit card market in India is highly underpenetrated (2.3% of population as at FY17) in comparison to other countries like USA (300%), Korea (180%) and Brazil (70%). Moreover, credit card spends of USA, Korea and Brazil is significantly higher than India at 60x, 10x, and 4x, respectively. The increasing focus on digitalization, shift towards a cashless economy and increasing awareness is expected to drive and strengthen growth in the credit card segment over the medium term. We expect this pace to continue with MFI book growing at ~40% CAGR while credit card segment grows at ~60% CAGR over FY18-21E. RBLs share in the outstanding number of cards increased from a mere 0.9% in March 2017 to 2.1% in March 2018, and it currently ranks amongst the top 10 credit card players. With access to BAFs customer base (26.22m), strong focus and superior product proposition, we expect RBL to continue its dominance in gaining market share.