Spending with credit cards touches an all-time high in May 2023 with ₹1.40 lakh crore
An average ₹16,144 was spent per card
With the spending, NPAs are also increasing
Updated: Jul 15th, 2023
Spending through credit cards crossed the ₹1.40 lakh crore mark for the first time in May 2023 after being rate bound in the financial year 2022-23.
The number of credit cards in the country, which was 8.5 crore in April, increased to 8.74 crore in May and reached an all-time high, according to data from the Reserve Bank of India. A total of two million new cards have been added in the first two months of the current financial year.
An average ₹16,144 was spent per card
In the last financial year, the expenditure through credit cards was between ₹1.10 lakh crore to ₹1.20 lakh crore per month, but in May 2023, the figure of ₹1.40 lakh crore was seen for the first time. Talking about the expenditure per card, an average of ₹16,144 has been spent per card in May.
HDFC Bank has the highest number of issued cards with 1.81 crore credit cards. HDFC Bank's share in the total number of credit cards was 28.50% in May. SBI Card is second with 1.71 cards, while ICICI Bank is third with 1.46 crore, the data also revealed.
Spending per card fell by 5% in April, while spending per card increased by 5% in May compared to April, a report said.
A change in spending behaviour after COVID-19
It is to be mentioned here that due to the online shopping method, payments through cards have also increased during the Corona period. A banker said that due to the various incentives provided in the use of credit cards, the expenditure through cards is increasing.
With the spending, NPAs are also increasing
On the other hand, non-performing assets (NPAs) related to credit cards are also increasing. Credit card NPAs increased to 2.94% in March 2023. Credit card disbursements are similar to unsecured loans. Therefore, it becomes difficult to collect such an amount.
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