Credit Card Surge: Private Banks Lead India's Financial Revolution

India's credit card market experienced significant growth over the past year, with over 1.10 crore new cards issued. Private banks dominate with a 71% market share, while PSU banks lead in debit card holdings. The surge marks a shift towards flexible, digital banking services.

The credit card market in India has experienced significant expansion over the past year, with over 1.10 crore new credit cards issued, according to a recent report by Indus Equity Advisors. The total number of credit cards in the country rose to 10.72 crore in November 2024 from 9.60 crore the previous year, reflecting a growing adoption among consumers.

Commanding a substantial 71 percent market share, private banks continue to dominate the credit card sector. By contrast, public sector banks maintain a smaller hold, accounting for 23.82 percent of the total credit card issuance. The report highlights a steady increase in the market influence of private banks, even as foreign banks see a decline in their share.

Transaction values through credit cards in November 2024 hit a remarkable Rs 1.70 lakh crore, underscoring their increasing use as a favored payment method. While PSU banks lead the debit card sector with a 64.67 percent share, private banks hold a lesser 24.94 percent share. Notably, online transactions in November 2024 amounted to 22.13 crore, with private banks holding a decisive 68.54 percent market share.

This upward trend in credit card use and the sustained dominance of private banks in online transactions indicate a consumer shift towards more flexible and digitally-enabled banking services. Despite this, PSU banks maintain a dominant position in the debit card segment, serving a traditional customer base. (ANI)

(With inputs from agencies.)