The Reserve Bank of India recently released credit card data for April 2023. According to the data, the total number of active credit cards in India increased from 85,303,238 at the end of March 2023 to 86,512,698 in April 2023.
Here is a graphic showing the market share of credit cards:
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This indicates that 1,209,460 new credit cards were issued by Indian banks during that month. However, we should also consider attrition. If the attrition rate is 1% (which is the industry average), then approximately 850,000 more credit cards have been issued. Therefore, approximately 21 lakhs credit cards have been issued in April 2023.
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In terms of spending, the total credit card expenditure in April 2023 amounted to Rs. 1,327,682,568,000. Here, I have included a graphic highlighting the top 10 banks based on credit card spending.
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Total Spends Breakup:
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The credit card market in India is experiencing significant growth and is considered to be advanced in terms of rewarding credit cards. However, there is a need for greater focus on business and corporate credit cards by Indian banks. Currently, this segment is largely overlooked by most banks in the country.
Expanding the range of business and corporate credit card offerings can benefit both banks and businesses.
By catering to the business and corporate segments, banks can tap into a lucrative market and provide valuable financial solutions to businesses of all sizes. This would not only drive growth in the credit card market but also foster stronger relationships with corporate clients.
It is essential for banks to recognize the untapped potential in the business and corporate credit card segment and allocate resources to develop innovative products and services specifically designed for these customers. This would contribute to the overall growth and diversification of the credit card market in India.
