Sign in Subscribe
Banking industry

Credit Card Spends Fall for the First Time Since July as Festive Season Ends

Strategic Insights

— 1 min read

Consumer spending on credit cards in India fell for the first time since July, signaling an end to the festive season. According to data from the Reserve Bank of India (RBI), credit card spends fell over 12% sequentially, with the average spend coming in at ₹14,280 for the month of November, down from ₹16,343 in October. This decline in spending is expected to moderate further over the next couple of months due to inflationary impacts on consumer spending.

Key Takeaways:

  • Credit card spends fell over 12% sequentially in November, with the average spend coming in at ₹14,280.
  • Total credit card spends continued to breach the ₹1 lakh crore mark for the ninth consecutive month.
  • Credit card spends per card on e-commerce platforms stood at around ₹8,495 in November, down from ₹9,473 in October.
  • Average credit card spends were at ₹13,857 in June and ₹14,478 in July.
  • The number of transactions per card declined to 2.9 in November, down from 3.2 in October.
  • The volume of transactions fell 8% month-on-month in November and stood at around 236 million.
  • Total credit cards in use during November stood at 80.7 million, showing a year-on-year growth of 19.4%.
  • Monthly card additions witnessed a decline, standing at 1.3 million in November, down from 1.7 million in October.
  • HDFC Bank, one of the largest card issuers, lost market share to SBI Cards, which added nearly 400,000 cards in November.
  • SBI Cards witnessed a market share increase of 17 basis points, while ICICI Bank lost market share worth 41 basis points.

Statistics:

  • Credit card spends fell over 12%
  • Average spend: ₹14,280 in November, ₹16,343 in October
  • Credit card spends per card on e-commerce platforms: ₹8,495 in November, ₹9,473 in October
  • Number of transactions per card: 2.9 in November, 3.2 in October
  • Volume of transactions: 236 million in November, down 8% from October
  • Total credit cards in use: 80.7 million in November, up 19.4% from last year
  • Monthly card additions: 1.3 million in November, down from 1.7 million in October

Sources:

  • Reserve Bank of India (RBI)
  • IDBI Research

Read more