iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Credit cards-in-force decline, total spends healthy: IIFL Securities

29 Sept 2022 , 02:31 PM

Key trends observed in the credit card data put out by the RBI for August 2022 are:
·         Net credit card additions in August 2022 were negative at -2.26 million versus +1.53 million cards added in July 2022, driven by closure of inactive cards, as per the RBI Circular (applicable from July 01, 2022)
·         Incremental sourcing was strong for SBI, ICICI Bank and IndusInd Bank, which had a strong MoM pick-up in card additions.
·         Monthly spends per card were flat MoM in August 2022, however, would have shown a decline if not for the lower card base.
·         SBI/HDFC Bank/Axis Bank were major gainers, in terms of total spends market share MoM, with ICICI Bank and IndusInd Bank losing share.
·         Decline in the cards-in-force for the industry has not affected card spends, given that these were inactive cards.
·         Total industry spends were 45% higher YoY in August 2022.
·         Of the total card spends in August 2022, ~60% were online (IndusInd Bank is at the higher end with ~77%). Underlying card additions momentum is expected to remain strong, going forward, with a higher focus on the unsecured retail segment, however, net additions could be low/see a decline.

Analysts at IIFL Securities expect this one-time clean-up across banks to be largely completed by Q2FY23, post which, it would be an on-going occurrence.

Card base lower MoM

The total cards in force decreased 2.8% MoM in August 2022 to 78.0 million; net card base declined by 2.26 million in August 2022 (monthly average additions of 1.66 million cards over April-July 2022). Net card additions (as a % of opening cards in force) were the highest for IndusInd Bank at 2.6%, followed by SBI at 2.0%. Among key foreign players, American Express and Standard Chartered saw further attrition, while Citibank added ~16k cards MoM in August 2022.

Industry spends lower; spends/card flat

Total card spends for the industry remained healthy at >Rs1 trillion for the sixth consecutive month – at Rs1.13 trillion, down 3.0% MoM / +44.5% YoY (total spends were higher than the average of Rs1.11 trillion over April-July 2022). Spends per card were relatively flat MoM in August 2022, to ~Rs14,500, and were ~4% higher than the Q1FY23 average of ~Rs13,900 as well.

Related Tags

  • credit cards
  • Credit cards August 2022
  • HDFC Bank
  • icici bank
  • Indian Banking
  • IndusInd Bank
  • Kotak Mahindra Bank
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.