HDFC leads the credit card market while SBI leads the debit card market

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The State Bank of India (SBI) the largest bank in the country, maintained its leading position in the market for debit cards and HDFC Bank in the credit card market in June 2022, according to the most recent data, despite a 6% drop in year-over-year growth. According to data compiled by PGA Labs, public sector banks hold a higher percentage of the debit card market than private banks, while reverze in the credit card market. Bank of Baroda came second with an 8% market share, followed by Bank of India, Canara Bank Union Bank and Punjab National Bank, each with 5%.

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State Bank Of India (SBI) and HDFC Bank: debit and credit card markets

  • PSU banks dominate the debit card market, HDFC Bank and Axis Bank recorded the highest annual growth rates in the industry at 19% and 18%, respectively.
  • HDFC Bank with a market share of 22%, also led the way in the credit card category, followed by State Bank Of India (SBI) (18%), ICICI Bank (17%), Axis Bank (12% ), RBL Bank (5%) and Kotak Mahindra Bank (5%).
  • Kotak Mahindra Bank only has a 5% market share in the credit card industry, it was up 64% year-on-year in June.
  • According to figures released by the Reserve Bank of India, credit card spending stood at 1.09 trillion rupees for the month, down 4.34% month-on-month (RBI) . However, spending increased by 73% year over year.

State Bank of India (SBI) and HDFC Bank: Record credit card spending

  • Spending on credit cards hit a record 1.14 trillion rupees in May.
  • In June, the banking system added more than 1.84 million credit cards, bringing the total number of active credit cards in the system to 78.72 million.
  • HDFC Bank, the country’s largest card issuer, added 386,487 cards in June. Kotak Mahindra Bank came second with 262,942 cards, followed by Axis Bank with 228,933 cards, ICICI Bank with 190,490 cards and State Bank Of India (SBI) Card with State Bank Of India (SBI) Card (166,976).
  • RBI’s decision to allow HDFC Bank to issue new credit cards in August last year is mainly responsible for the increase in the rate of card additions.
  • The RBI has threatened to stop the bank from issuing new cards for eight months from December 2020.

The data also shows that premium credit cards like American Express and CITI, which have negative annual growth rates of -8% and -2, respectively, are losing market share. According to PGA Data, the two banks have a combined market share of 5%.

State Bank of India (SBI) and HDFC Bank: Important Takeaways

  • Chairman of State Bank of India (SBI): Shri Dinesh Kumar Khara
  • President of HDFC Bank: Deepak Parek

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