Credit Card outstanding increases y-o-y by 29.6% in January

8 Mar 2023 , 01:02 AM

Credit card outstanding increased by 29.6% in January to an all-time high of Rs1.87 lakh crore, owing to increased digitization and rising consumer confidence in the post-Covid period.

According to the Reserve Bank’s most recent data, credit card outstanding has increased by more than 20% in the first ten months of the current fiscal year.

June witnessed the highest growth of 30.70% during the current fiscal.

Rama Mohan Rao Amara, CEO, and MD of SBI Card, stated that the digitization of various categories has led to a rise in expenditures by current customers who are utilizing their credit cards.

He added that the ease of payment has definitely contributed to this increase in spending in categories such as health and fitness, education, and utility bills, among others.

Speaking about the monthly patterns in credit card usage, Rao commented that there has been a steady increase in credit card expenditures over the past several months. In January of this year, card spending stood at Rs1.28 lakh crore, up from Rs1.26 lakh crore in December 2022.

The Reserve Bank data also revealed that the annual growth in credit cards outstanding in January 2023 was 29.6%, compared to around 10% the previous month. Since then, the outstanding amount has increased from Rs1,41,254 crore in January 2022 to Rs 1,86,783 crore this January.

By the end of January 2023, nearly 8.25 crore credit cards had been issued by various banks.

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