Private Sector Banks Hold Dominance Over Credit Cards; Debit Cards Find Forte Within Public Banks
The total value of transactions processed via credit cards surged to Rs 1.7 lakh crore, a notable increase from earlier periods.
The credit and debit card market in India continues to evolve with a significant growth in the number of cards and the value of transactions, reflecting a robust digital payment ecosystem.
As of November, new data from Indus Equity Advisors highlights that public sector banks are the largest issuers of debit cards and private banks lead in issuing credit cards.
November witnessed continued growth in credit card usage, with the number of credit cards outstanding reaching 10.7 crore. The total value of transactions processed via credit cards surged to Rs 1.7 lakh crore, a notable increase from earlier periods.
Market Share By No. Of Credit Cards
HDFC Bank Ltd. remains the leader, holding a significant market share of 21.29%. State Bank of India follows close with a 18.69% share.
In private banks, ICICI Bank Ltd. is the second biggest in terms of card holding with a 16.55% share, followed by Axis Bank Ltd. at 13.74%.
Other major players include RBL Bank Ltd. (4.76%), Kotak Mahindra Bank Ltd. (4.75%), and IDFC First Bank Ltd. (3%).
Market Share By No. Of Transactions
HDFC Bank and ICICI Bank dominate the transaction volume, with the former leading at 26.27% of all credit card transactions. ICICI Bank follows closely with 18.52%.
Other key contributors include SBI (16.61%) Axis Bank (14.59%) and Kotak (3.9%).
The value of transactions for credit cards increased substantially by 23% year-over-year, signaling a preference for higher-value purchases through credit cards.
Debit cards also continue to be a crucial payment tool for Indian consumers. The number of debit cards issued by banks in India reached 99.4 crore by November, while the total transaction value processed through debit cards stands at Rs 2.8 lakh crore, down from earlier Rs 3.21 lakh crore at the same time last year.
Market Share By No. Of Debit Cards
Public sector banks still hold a majority share in the debit card market, but private sector banks and foreign banks are gaining ground.
SBI leads with 23.76% of all debit cards, followed by Bank of Baroda (10.13%) and Canara Bank (5.94%).
Market Share By Value Of Transactions On Debit Cards
Despite the large number of cards in circulation, public sector banks continue to capture a large portion of the debit card transaction value, holding a large market share.
Private sector banks, such as HDFC Bank and Axis Bank, account for significant transaction values, reflecting the growing preference for these cards for daily transactions.
In terms of transaction growth, debit card transactions are down 17% year-over-year, signalling a decline in growth.
