Net Credit Card Additions In Feb 21 Down 47% YOY

According to digital payments tracker report from Motilal Oswal Financial Services Limited (MOFSL), the Banking system reported net additions of 549k new Credit Cards in Feb'21 (a 47% YoY decline) v/s 701k new additions in Jan'21. This has taken the total Credit Card base to 61.6m (7.9% YoY growth) v/s a growth of 8.9% YoY in Jan'21.

During Feb'21, ICICIBC, SBICARD, and AXSB were the largest Credit Card acquirers, with an incremental market share of 36.1%, 18.1%, and 18%, respectively. In FY21, ICICBC gained the highest incremental market share of 32.4%, followed by SBICARD at 30.6%.

Credit Card Spends Decline

Credit Card spends declined 4% YoY to Rs 604 billion in Feb'21, the digital payments tracker By Motilal Oswal shows.

"In 11MFY21, total spends declined 18.4% YoY to INR5.6t. IIB reported the strongest growth (23.7% YoY) in Feb'21, followed by ICICBC at 10.2%. RBK witnessed modest growth (2%), while HDFCB and SBICARD saw a modest decline (1-2%). AXSB, CITI, and KMB saw a decline in the 15-20% range, while AMEX reported a much sharper fall at 44% YoY. In 11MFY21, ICICIBC and RBK reported a 3-4% decline, while HDFCB and SBICARD reported a 10-12% fall. Other players like CITI/AXSB/AMEX reported a much sharper decline (34%/36%/59%)," the Motilal Oswal report states.