Credit card spend expected to grow to Rs 15 trillion by FY24: Report

SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI), has filed documents for its maiden offering which could mop up Rs 9,500 crore in what is one of the biggest initial public offerings (IPOs) in the domestic market and the first public offering by a credit card issuer in the Indian market. In India, there are 74 players offering credit cards. HDFC Bank, Axis Bank and ICICI Bank along with SBI Card are the leading pure-play credit card issuers, dominating the credit card business with a total of approximately 72 per cent market share by number of outstanding credit cards as of March 2019 and approximately 66 per cent market share by credit card spends in FY19. The draft prospectus puts out interesting data on the credit card industry. It says credit card dues are expected to grow at a compound annual growth rate (CAGR) of 23 per cent to reach Rs 3.3 trillion by FY 24. And, the credit card spends is expected to grow to Rs 15 trillion by FY24 from Rs 6 trillion in FY19. This will be supported by spending growth and increasing EMI-based payments using credit cards. Moreover, the number of credit cards outstanding is also projected to grow at fast pace of 23 per cent CAGR in the next five years, according to CRISIL Research.