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Decline in Market Share for Top Credit Card Issuers in India


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According to data from the Reserve Bank of India, the top four credit card issuers in the country experienced a decline in their market share in FY24. This decline was observed in terms of both monthly card spends and total cards outstanding. The market share of the top four issuers, namely HDFC Bank, SBI Card, ICICI Bank, and Axis Bank, decreased from 74.79% in March 2023 to 71.98% in March 2024. This decline can be attributed to the growth in overall spends base and the accelerated growth seen by mid-sized players.

In March 2024, the overall spends for credit cards amounted to ₹1.6 lakh crore, representing a 19.8% increase compared to the previous year and a 10.2% increase compared to February 2024. The spends for the top four issuers were 8-14% higher compared to February.

On the other hand, the market share of the next ten issuers, ranked 5th to 14th, increased from 22.35% in the previous year to 24.85% at the end of FY24. These issuers included IndusInd Bank, RBL Bank, Kotak Mahindra Bank, American Express, IDFC First Bank, Yes Bank, Bank of Baroda, AU Small Finance Bank, Federal Bank, and Standard Chartered Bank.

Additionally, the market share of the next 21 issuers also rose to 3.17% from 2.86% in the previous year. Bandhan Bank and Utkarsh Small Finance Bank were the new entrants in the credit card industry during this period.

During FY24, the industry witnessed a net addition of 1.6 crore cards, with the top four issuers accounting for 97.62 lakh cards. The total number of cards outstanding at the end of FY24 was 10.18 crore, with a net addition of 12.02 lakh cards in March 2024.

The top four issuers had a total of 7.06 crore cards in force as of March 2024, up from 6.09 crore in the previous year. However, their market share declined from 71.37% to 69.40% compared to a year ago.

Similarly, the market share of the next ten issuers increased to 25.04%, with 2.55 crore cards as of March 31, compared to 1.99 crore cards at the end of FY23, representing a market share of 23.35% in terms of total cards in force.

The remaining issuers also experienced an increase in market share, rising from 5.28% a year ago to 5.56% as of March 2024, with a total of 57 lakh cards outstanding, up from 45 lakh.

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