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Credit Card Market in India 2022

  • Report

  • 65 Pages
  • February 2022
  • Region: India
  • Netscribes (India) Pvt Ltd
  • ID: 5550218
Credit card is one of the earliest modes of cashless transaction that allows cardholders to borrow funds to pay for goods and services from merchants that accept card payments. The credit limit is determined based on customer’s credit score, history, and income. The credit card market is smaller than that of the debit card. Commercial banks in India such as State Bank of India, HDFC Bank Limited, and ICICI Bank Limited, and Kotak Mahindra Bank Limited, as well as international firms such as American Express and City Bank are the major players in the market.

Market insights:

The total value of credit card transactions is expected to reach INR 51.72 Trn by FY 2027, expanding at a CAGR of 39.22% during the FY 2022 - FY 2027 period The volume of credit card transactions is projected to expand at a CAGR of ~26.43% during the forecast period. In FY 2021, a significant increase in the value of credit card transactions was witnessed. This rise was the result of a surge in the number of transactions per credit card and cardholders. The banking system reported over 1.2 million new credit card additions in November 2021.

Segment insights:

The market can be segmented based on type of lenders. It is dominated by private banks, which have ~70% share in total credit card balances. The share of cards issued by private banks slowed down during the first two quarters of FY 2021. It showed a sharp growth during the last two quarters of FY 2021 and in the second and third quarter of FY 2022. It is expected to continue developing in the next few years. The share of new card originations of private banks increased in the third and fourth quarter of FY 2021, as compared to the same quarters of FY 2020.

COVID-19 impact analysis:

In the wake of the pandemic, the National Payments Corporation of India (NPCI) encouraged customers and providers of emergency services to adopt digital payment systems, ensuring the safety of contactless transactions. As a result, transactions increased to some extent. However, reduced international travel due to restrictions imposed during the 2020 - 2021 period negatively impacted credit card usage during that time. Revenue levers are likely to be hard to pull as several customers are unwilling to use credit cards frequently. Therefore, various cost management strategies need to be adopted by issuers to attract customers and attain a competitive and robust future for the credit cards market.

Table of Contents

Chapter 1: Executive summary

Chapter 2: Socio-economic indicators

Chapter 3: Introduction
3.1. Market definition and structure

Chapter 4: Market overview
4.1. Credit card market in India - An overview
4.1.1. Credit card transaction value and growth forecast (FY 2020 - FY 2027e)
4.1.2. Credit card transaction volume and growth forecast (FY 2020 - FY 2027e)
4.1.3. New credit cards issued
4.1.4. Monthly increase in the number of outstanding cards (December 2020 - November 2021)
4.1.5. Monthly growth of number of transactions at ATM and PoS through credit cards (December 2020 - November 2021)

Chapter 5: Market segmentation
5.1.1. Credit cards - Market share of lenders based on credit balances and circulation
5.1.2. Credit cards - Expected share of lenders based on credit card origination
5.1.3. New cards issued (QoQ FY 2021) - By lender type
5.1.4. Market share of major credit card lenders in India

Chapter 6: Impact of COVID-19
6.1. COVID-19 impact assessment
6.1.1. Impact on issuance of cards
6.1.2. Reduced credit card usage due to restricted international travel
6.1.3. Increased stress on borrowers
6.2. Effective schemes to increase credit card profitability after COVID-19 pandemic
6.1.1. Well-aligned reward programs to attract/retain customers
6.2.2. Creation of structured scheme fees for credit card

Chapter 7: Market influencers
7.1. Key growth drivers
7.2. Key challenges

Chapter 8: Competitive landscape
8.1. Axis Bank Limited
Company information
Business description
Key people
Financial snapshot
Key ratios
Key financial performance indicators
Key business segments
Key geographic segments
*Note: Similar information has been covered for all other public companies. Private companies’ data given on a best-effort basis
8.2. HDFC Bank Limited
8.3. ICICI Bank Limited
8.4. Induslnd Bank Limited
8.5. Kotak Mahindra Bank Limited
8.6. State Bank of India
8.7. American Express
8.8. Citibank
8.9. Hong Kong And Shanghai Banking Corporation
8.10. Standard Chartered Bank Limited

Chapter 9: Recent developments
9.1. Recent developments

Chapter 10: Appendix
10.1. Research methodology
10.2. About the Publisher
10.3. Disclaimer
  • Companies profiled
  • Axis Bank Limited
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Induslnd Bank Limited
  • Kotak Mahindra Bank Limited
  • State Bank of India
  • American Express
  • Citibank
  • Hong Kong And Shanghai Banking Corporation
  • Standard Chartered Bank Limited

Companies Mentioned

  • Axis Bank Limited
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Induslnd Bank Limited
  • Kotak Mahindra Bank Limited
  • State Bank of India
  • American Express
  • City Bank
  • Hong Kong And Shanghai Banking Corporation
  • Standard Chartered Bank Limited