Credit card spending is rising steadily in India with major players cashing on the market share. The restarting of international flights from March 2022, reduction in COVID cases and general fatigue among Indian travelers for having not traveled for the past 2 years, has lead to a dramatic rise in credit card spending in India.
A report by the ratings agency CARE had highlighted the rejuvenation in the airline, travel and hospitality sectors, three key areas that influence credit card spending.
In terms of both the number of cards and the overall spending, HDFC Bank maintained its dominance in the credit card market. Customers of HDFC Bank credit cards spent 28% of the total amount despite making up only 22% of all credit card users.
Three out of every four credit card purchases come from the top five issuers. However, HDFC Bank credit card holders aren’t the most extravagant spenders; in fact, Bank of Baroda, a comparably inconspicuous company, has replaced IndusInd Bank as the leader in this metric.
Top 5 Credit Card Companies in India
The top five credit card companies in India, according to RBI, are as follows:
- HDFC Bank with a 22% market share.
- SBI Credit Cards with an 18% market share.
- ICICI Bank, holding 17% of the market.
- Axis Bank, also with a 17% market share, including the portfolio acquired from Citi.
- Kotak Mahindra, securing the fifth position in terms of the customer base.
Credit card companies in India with Most Spending
When it comes to lavish spending, Bank of Baroda customers lead the way with an average monthly spend of Rs. 21,300.
IndusInd Bank follows closely behind with an average spend of Rs. 20,111.
HDFC Bank’s credit cardholders also exhibit a penchant for generous spending, with an average monthly spend of Rs. 18,356.
The fourth is Karur Vyasa Bank with average spending of Rs.16,813 among its customers.
Citibank customers are among the fifth lavish spenders with an average of Rs. 16,525 spent per month.
The surge in credit card spending not only reflects a growing consumer confidence but also signals a shift in financial preferences, as credit cards offer attractive benefits and the flexibility to manage expenses.
