Country’s largest lender, State Bank of India continues to dominate the debit cards market in October 2022, with a 29% share. Compared to last month the share was slightly less, where SBI led the debit card market by 30 per cent in September.
More About The News:
According to the latest data collated by PGA labs, SBI retained the top position in the debit cards market while HDFC bank maintained its top position in the credit cards market. While PSU banks hold the lion’s share in the debit cards market, Kotak Mahindra Bank and Axis Bank witnessed the highest YoY growth in the credit cards segment with 70% and 37%, respectively.
About Credit Card market:
The momentum of the credit card business has remained strong in 2022, in terms of card issuance and spends, according to Reserve Bank of India (RBI) data. HDFC Bank remains the dominant force with a market share of 22.97%, followed by SBI at 19.09% and ICICI Bank at 17.92%.
HDFC Bank issued around 9.50 lakh credit cards in the this quarter, its highest ever credit card issuance in any quarter. This came after RBI lifted the ban on credit card issuances. However, the bank saw a fee income growth of just 2% because of contraction in fees from payment products. The bank attributed this to more spends and lower revolver rates, lower utilisation of credit limits, and the launch of cards with fee waiver features.
What The Data Shows:
The data by PGA labs also highlighted that elite credit cards issuers like American Express and CITI are losing market share with a negative YoY growth of -8% and -2, respectively. Despite the fact that Kotak Mahindra Bank has a market share of only 5% in the credit cards market, it has witnessed a 70% YoY growth in the month of July.