Credit card spends are rising since June 2021, as the second wave of Covid-19 receded. It gained maximum traction in October 2021 as people shopped and celebrated during the festival season. The total value of credit transactions at the end of October stood at Rs 87,438.6 crore. This surge in credit card spends were mostly from shopping purchases according to reports. However, there was a fall in usage of credit cards in November 2021. According to a report by ICICI Securities, credit card spends fell 12% MoM in November to Rs 89,200 crore. This is slightly higher than the cumulative numbers from April 2021 to September 2021.
After RBI lifted the ban from HDFC Bank on issuance of credit cards, HDFC Bank’s value of credit card transactions rose to Rs 26,593.8 crore in September 2021. Soon after the ban was lifted in August 2021, ICICI Bank’s market share in new card issuances fell to 21% from 51% in Q2FY22, according to a report by LKP Securities.
SBI Cards & Payments’ market share rose 100 bps MoM to 19.9% in November 2021. Axis Bank and Kotak Mahindra Bank’s value of credit card spends remain steady, but their market share has been steadily rising. In November 2021, Axis Bank’s market share increased to 3.9% from 3.83% in October and 3.75% in September. Kotak Mahindra Bank’s market share also saw a marginal increase to 11.7% in November 2021 from 11.65% in October and 11.56% in September, helped by the overall rise in spending during the festive season.