Credit Card spending in India increased for the 11th consecutive month of January, surpassing Rs 1 lakh crore. The spending reached Rs 1.28 crore, which is nearly 1% compared to December’s already high base when card spending was reported at 1.26 lakh, revealed a report of the business line.
The rise in expenditure was driven by the surge in e-commerce and online transactions. Year-on-Year credit card spending in India was higher by approx. 45%, the report said.
In October last year, the expenditure witnessed a surge to a peak of 1.29 crore amidst the festive season.
In January, e-commerce sales made up more than 61% of the total card spending, indicating a significant shift toward digital shopping. Rest is followed up by sales transactions at 38% and other transactions making up the rest.
Most of the credit card issuers, SBI, Axis Bank, and ICICI Bank saw a single-digit increase in spends: But HDFC bank witnessed a surge of 1.3% percent decline despite outstanding cards.
The private sector continues to maintain its leadership position in terms of spending with a market share of 28 percent, followed by SBI Card which had a market share of 19 percent, the report noted. In January, the net card additions were 12.6 lahks or 1.6% which is higher than December’s 5.8 Lakh. As a result, the total outstanding credit card reaches 8.2 crores by the end of the month.
