Banks had logged file excessive bank card spends of ₹2.02 lakh crore in October, backed by a number of festivals throughout the month particularly Diwali.
Spending on bank cards elevated 5% from a 12 months earlier in November, although easing from a greater than 13% improve within the month earlier than.
“Bank card spending witnessed moderation in November 2024, put up robust festive demand in October. Spending by way of point-of-sale (PoS) transactions dropped by 14% sequentially, whereas on-line spending declined by 17.5% month-on-month,” stated Meghna Luthra, analysis analyst at InCred Equities.“This was largely on anticipated strains, given the excessive base as a consequence of festive demand. We’ll preserve an in depth eye on the development in coming months to see how the demand development strikes,” she added.
India’s third largest personal sector lender Axis Financial institution noticed the most important sequential decline in bank card spending at almost 24% in November.
New Card Additions to Average
Spending on SBI Playing cards and Kotak Mahindra Financial institution bank cards fell 21% and 16.8%, respectively. The expansion in transaction quantity tempered by 9.1% over October.
Rising delinquencies
“Going ahead, we anticipate card spends to stay vary certain within the coming months,” stated Bunty Chawla, analyst, IDBI Capital. “Internet new card additions are anticipated to average within the close to time period as a consequence of rising delinquencies within the bank card receivables.”
HDFC Financial institution’s market share in November rose by 30 foundation factors month-on-month, whereas that of SBI Playing cards fell by 90 bps. ICICI Financial institution recorded a 20 bps fall and Axis Financial institution witnessed a drop of 120 bps in market share. IndusInd Financial institution gained 50 bps market share.
Banks train warning
Banks are additionally persevering with their cautious stance in including new playing cards, with web new card additions greater than halving to 350,000 in November from 780,000 in October. Internet new playing cards declined by 73% from a 12 months earlier.
New card issuances have been principally led by SBI Playing cards and HDFC Financial institution, which added 230,000 playing cards and 190,000 playing cards, respectively.