Summary:

In October, credit card spending in India reached Rs 2 trillion (US$ 2.38 billion), marking a 14.5% increase from September, driven by festive season purchases. The Reserve Bank of India (RBI) reported a 13% year-on-year growth. Despite the rise in spending, outstanding credit cards increased by 12.85% YoY to 106.88 million. Delinquencies remain high, prompting issuers to tighten credit score requirements and reduce spending limits to mitigate defaults.

HDFC Bank led credit card issuance growth in October with 241,119 new cards, followed by SBI Cards with 220,265 and ICICI Bank with 138,541. Axis Bank saw a decline of 20,573 cards. While high-end clients contributed to increased spending, lenders tightened credit criteria. Mr. Saurabh Bhalerao warned that credit card spending growth in FY25 is expected to be weaker than last year's high teens. The RBI's increase in risk weights is prompting a rethinking of growth strategies.

Source: IBEF 

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