During the festive season in October, all records of credit cards were broken. That month, the expenditure figure with credit card crossed Rs 2 lakh crore. But the November report is quite shocking. Credit card expenditure has declined by 16 per cent in 11 months of the year. Which is a huge decline. Although this figure is more than 5 percent in the same period last year, this figure has reduced considerably compared to a month ago.
Experts believe that consumers have now become quite cautious about credit card expenses. On the other hand, there is no festive season in which you have to spend. In October, many such festivals came from Diwali to Bhai Dooj, due to which people have shopped a lot with credit cards. Let us also tell you what story RBI figures are telling.
Large fall in credit expenditure
According to the Reserve Bank of India data, the credit card spending saw a 16 percent decline in November and it remained at Rs 1.70 lakh crore, which reflects the recession in consumer spirit after a strong festive season. In October, the cost of Rs 2.02 lakh crore was seen from the credit card. Which is a record. The expenditure on credit card increased by 5 percent in November a year ago, although the fall of about 16 percent last month was seen.
17.5 percent fall in online expenditure
Meghna Luthra, a research analyst at Increded Equities, said in a media report that there was a decline in credit card spending in November 2024 following a strong festive demand in October. The expenditure in the spending through point-off-cell (POS) transactions declined by 14 percent, while the online expenditure saw a decline of 17.5 percent monthly. India’s third largest private lender Axis Bank has seen a decline of about 24 percent in credit card expenditure in November. On the other hand, spending on SBI Card and Kotak Mahindra Bank Credit Card has fallen by 21 percent and 16.8 percent respectively. Transaction volume has seen a 9.1 percent increase compared to October.
Its risk has also increased
IDBI Capital analyst Bunty Chawla said in a media report that we hope that card expenses will remain in a limited range in the coming months. He further stated that credit card payment is expected to reduce the number of new credit card holders in the near period. In November, HDFC Bank’s market share increased by 30 basis points monthly, while the market share of SBI card declined by 90 basis points. ICICI Bank recorded a decline of 20 BPS and Axis Bank’s market share saw a decline of 120 BPS. IndusInd Bank won 50 BPS market share.
Banks are also taking a vigilant stand in increasing the number of new card holders. A total of new cards were added in November, which declined by more than 780,000 to 350,000 in October. Pure new cards have declined by 73 percent compared to a year ago. SBI Card and HDFC Bank played a leading role in issuing new cards by adding 230,000 cards and 190,000 cards respectively.
