In July, credit card expenditures reached an all-time high of Rs 1.44 lakh crore, as reported by RBI data: ICCBizNews

By Manoj, ICCBizNews

According to RBI data, the majority of credit card issuers experienced a surge in spending during July.


Credit card expenditures in July of this year reached an unprecedented level of Rs 1.44 lakh crore, marking a 5.5 percent upswing when contrasted with June. This achievement significantly surpasses the prior milestone of Rs 1.41 lakh crore, recorded in May. The data, as compiled by the Reserve Bank of India, indicates that the banking sector added nearly 11.9 lakh new credit cards in July, expanding the total outstanding credit card count to 8.99 crore, as opposed to the previous month's 8.86 crore.


In June, credit card spending had dipped to Rs 1.37 lakh crore, registering a decline of 2.91 percent compared to May. RBI data demonstrates that most major credit card issuers experienced an uptick in spending during July, propelling credit card utilization to reach a new pinnacle.


What insights can we gather from the RBI's credit card usage data?


The data indicates a decline in the share of PoS (point-of-sale) transactions, dropping from 36 percent in June to 34.3 percent in July. Conversely, the proportion of e-commerce payments made with credit cards increased to 65.7 percent from the previous 64 percent.


HDFC Bank Takes the Lead in Credit Card Spending for July 2023


HDFC Bank emerged as the frontrunner in terms of credit card spending, with total transactions amounting to Rs 39,403 crore in July 2023. The State Bank of India maintained its second position in July in terms of overall spending. Meanwhile, ICICI Bank led in terms of percentage-wise growth, boasting a substantial 12.2 percent surge. Kotak Mahindra Bank also experienced a notable increase in credit card usage, with a growth rate of 10.5 percent. HDFC Bank, SBI, and Axis Bank observed credit card spending increases ranging from 2 to 5 percent.


Credit Card Additions in July 2023


The number of newly added credit cards experienced a 1.3 percent rise in July. The net addition of 11.9 lakh cards exceeded the 9.4 lakh cards added in June but fell short of the figures recorded in April and May, which saw additions of over 12 lakh credit cards. HDFC Bank retained its position as the largest card issuer by adding 1.91 lakh cards, bringing its total cards-in-force to 1.85 crore.


Axis Bank witnessed a significant increase, adding 2.30 lakh cards, a notable surge compared to the previous month when only 41,019 cards were added.


ICICI Bank's total credit cards reached 1.5 crore, thanks to the addition of 1.86 lakh cards in July. The State Bank of India achieved a net addition of 2.07 lakh cards, increasing its total cards-in-force to 1.76 crore.


What Might This Indicate?


The surge in credit card usage could suggest increased spending during the festive season. Furthermore, this uptick may signal that more companies will offer credit card deals as the festivals approach.

Post a Comment

0 Comments
Post a Comment (0)
To Top