Pace of credit card additions falls 50% in October
credit card additions at Indian lenders even through the festive season, with analysts anticipating a circumspect approach from banks as pockets of the consumption economy show signs of a demand fatigue.
Latest Reserve Bank of India (RBI) data published recently showed credit card additions fell almost 50% year-on-year in October, taking the total card base to about 107 million. Lenders added 786,000 new cards for the month over September.
«Net new card additions are expected to moderate in the near term due to rising delinquencies in the credit card receivables,» said Bunty Chawla, research analyst at IDBI Capital Markets. «Most lenders remain cautious on new card disbursements also due to RBI's risk weight norms. Though we expect card spends to remain range bound in the coming months.»
In October 2023, lenders had added 1.53 million credit cards. At the end of October 2023, credit cards in use totaled 94.7 million.
New cards issuance was majorly led by large players — HDFC Bank, SBI Cards, and ICICI Bank. Together, they added about 600,000 cards.
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