Synopsis: As of November 2024, State Bank of India (SBI) and HDFC Bank continue to lead India's debit and credit card markets, respectively. SBI holds a 24% share in the debit card segment, while HDFC Bank commands 21% of the credit card market. Notably, Axis Bank and HDFC Bank achieved significant year-on-year growth in debit cards, at 16% and 9% respectively, and Bank of Baroda led the credit card segment with a 33% increase.
In November 2024, India's banking sector witnessed sustained leadership in the card market, with State Bank of India (SBI) and HDFC Bank maintaining their dominant positions in debit and credit cards, respectively.
According to data from 1Lattice, SBI held a substantial 24% share of the debit card market, reaffirming its status as the nation's largest public sector bank.
HDFC Bank, the leading private-sector lender, commanded 21% of the credit card market during the same period.
The debit card market also featured significant contributions from other major banks.
Bank of Baroda secured a 10% market share, followed by Canara Bank, Union Bank, and HDFC Bank, each holding approximately 6%, and Bank of India with 4%.
In terms of year-on-year growth within the debit card segment, Axis Bank and HDFC Bank led the field, recording increases of 16% and 9%, respectively.
Union Bank and Canara Bank each reported a 5% growth, while Bank of Baroda matched this with its own 5% increase.
Despite retaining its leading position, SBI experienced a 4% decline compared to the previous year, and Bank of India faced a more pronounced decrease of 19%.
Conversely, Punjab National Bank reported a modest growth of 2%.
In the credit card arena, HDFC Bank's 21% market share was followed closely by SBI Bank at 19%, ICICI Bank at 17%, and Axis Bank at 14%.
Bank of Baroda distinguished itself with a remarkable 33% year-on-year growth in the credit card segment, the highest among its peers.
HDFC Bank and IndusInd Bank each achieved a 17% and 16% increase, respectively, with market shares of 21% and 3%. Both Axis Bank and ICICI Bank reported a 10% growth year-on-year.
In contrast, Kotak Mahindra Bank experienced a 10% decline, holding a 5% share of the credit card market.
Global players like American Express saw a modest 5% increase, maintaining a 1% market share.
The overall card payments landscape in India has demonstrated robust growth over the past four years, with debit and credit card transactions exhibiting compound annual growth rates (CAGR) of 20% and 19%, respectively.
Projections from PwC India indicate that the number of active credit cards, which stood at 71 million in the fiscal year 2022, is expected to continue growing at an annual rate of approximately 16% over the next four years.
This expansion is further supported by forecasts from GlobalData, anticipating the Indian credit and charge card payments market to grow by 15.5% in 2024, reaching ₹22.3 trillion ($270.4 billion), driven by an increasing inclination towards non-cash payments.
Conclusion:
The Indian card payments market is experiencing significant growth, with major banks like SBI and HDFC Bank leading in their respective segments.
The dynamic shifts in market shares and the impressive year-on-year growth rates of certain banks highlight the competitive nature of the industry.
As digital payments continue to gain traction, the landscape is poised for further evolution, with both traditional banks and new entrants striving to expand their foothold in this rapidly developing sector.
Disclaimer: The information presented in this article is based on data available up to November 2024 and is intended for general informational purposes only. Market conditions can change, and readers are advised to consult financial experts or conduct further research before making any financial decisions.
