SBI Cards likely to gain as higher spending expected in third quarter

The four largest players are HDFC Bank, SBI Cards, ICICI Bank and Axis Bank and they hold 70 per cent of outstanding cards and receive about 75 per cent of spends

The Reserve Bank of India (RBI) credit card data for August 2023 indicates healthy growth for credit card usage. Card spending rose by 3 per cent month-on-month (M-o-M) in August, and year-on-year (Y-o-Y) growth was 32 per cent (versus 5 per cent M-o-M and 25 per cent Y-o-Y for July ’23).
 

Taking 2023-24 financial year (FY24) year-to-date (April-August 2023), growth in spending was 27 per cent Y-o-Y. In September ’23 (till September 25) spending has been relatively subdued so far, with a drop of 5 per cent M-o-M and 19 per cent growth Y-o-Y over September ’22. Physical