In a first, credit card spend crosses Rs 1.4 trillion-mark in May: RBI data

After staying range-bound in 2022–23 (FY23), credit card spend hits Rs 1.4 trillion in May for the first time, reveals the latest data released by the Reserve Bank of India (RBI).

The total number of credit cards in force also increased to 87.4 million in May, again an all-time high, from 86.5 million in April. The first two months of the financial year saw the addition of nearly 2 million cards.

“Credit card spends were in the range of Rs 1.1–1.2 trillion throughout FY23 but reached Rs 1.4 trillion for the first time in May 2023,” states a report from ICICI Securities. Spends were Rs 16,144 per card in May.

HDFC Bank, the largest private sector lender in the country, has the maximum number of cards in circulation, with 18.12 million in May and a 28.5 per cent market share in spends. HDFC Bank is followed by SBI Card, with 17.13 million cards in force, and ICICI Bank (14.67 million).

Axis Bank, the fourth-largest, is closing the gap with ICICI Bank after the Citi acquisition with 12.46 million cards. According to RBI data, Citi had 162,150 cards in May.

Credit card spend per card per month increased by 5 per cent month-on-month for the industry in May 2023, following a decline of 5 per cent in April, observes the ICICI Securities report.