February 2025 noticed credit card spending fall to ₹1.67 lakh crore, marking a seven-month low, as per the newest Reserve Financial institution of India (RBI) data. The drop marks a 9% month-on-month (MoM) decline from ₹1.84 lakh crore in January.
In response to Asit C Mehta Funding Intermediates, the autumn in credit card spending is in line with historic patterns. “February sometimes sees decrease discretionary spending as a consequence of tax planning and the absence of main festivals,” the agency famous in its newest BFSI analysis replace.
On a yr-on-yr (YoY) foundation, nevertheless, spending was up 12%, though at a slower tempo in comparison with earlier months.
Level-of-sale and e-commerce each decline
Spending at bodily level-of-sale (PoS) terminals fell to ₹62,124 crore in February, down from ₹69,429 crore in January.
Equally, e-commerce transactions dropped to ₹1.05 lakh crore from ₹1.15 lakh crore, RBI data confirmed.
Common spending per transaction additionally moderated, slipping from ₹4,282 in January to ₹4,219 in February, as customers scaled again excessive-ticket purchases.
Complete transaction volumes dropped 8% MoM to 396 million.
Main card issuers report decrease volumes
High personal and public sector card issuers all noticed month-on-month declines in transaction values.
HDFC Financial institution, the biggest issuer, recorded spends of ₹46,378 crore in February, down from ₹50,664 crore in January.
ICICI Financial institution noticed its credit card spends fall to ₹30,990 crore from ₹35,682 crore, whereas Axis Financial institution’s fell to ₹18,884 crore from ₹20,212 crore.
SBI Card, a significant participant in the general public sector area, additionally witnessed a decline in transaction values to ₹26,176 crore from ₹28,977 crore in January.
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Card additions gradual amid asset high quality considerations
The variety of excellent credit playing cards grew marginally by 0.4% MoM to succeed in 10.9 crore in February, in line with each Asit C Mehta and Axis Securities experiences.
Nonetheless, the tempo of recent card additions remained sluggish. Trade-broad, solely 4.42 lakh internet playing cards have been added in February, a pointy drop from 8.17 lakh in January.
“Card issuance has plateaued amid persisting asset high quality considerations. Throughout April to February FY25, internet card additions fell by about 51% yr-on-yr,” Axis Securities stated in a latest trade replace.
Yr-to-date (YTD), the trade added about 75 lakh playing cards in comparison with 1.53 crore throughout the identical interval in FY24.
Personal banks retain dominance
Personal banks, nevertheless, continued to guide incremental card additions, accounting for 51% of internet additions in February.
HDFC Financial institution emerged as the highest gainer in market share by card base (CIF), rising by 133 foundation factors YoY throughout 11MFY25.
Conversely, ICICI Financial institution, Axis Financial institution, and Kotak Mahindra Financial institution noticed declines in card-based market share.
SBI Playing cards added 1.83 lakh internet prospects in February, a 25% MoM soar, supported by selective onboarding.
Whereas SBI gained 9 foundation factors in card base MoM, it misplaced 8 foundation factors in spend share.
Amongst PSU banks, Financial institution of Baroda confirmed strong YoY progress in February: 23% in card base, 27% in spends, and 115% in transaction volumes, although it added simply 2,000 internet new playing cards throughout the month.
Outlook
The slowdown in card utilization and issuance displays broader trade considerations round rising family debt and tightening norms for unsecured lending.
In response to TransUnion CIBIL, new-to-credit debtors pulled again considerably, with NTC-originated retail loans falling 21% YoY in Q3 FY25.
Nonetheless, analysts count on a reasonable rebound in credit card exercise in the approaching months as festive spending returns and regulatory headwinds ease.
“Whereas the general progress fee has slowed, aggressive dynamics amongst main gamers have intensified. We count on this tepid trajectory to proceed in the close to time period earlier than stabilising,” stated Akshay Tiwari, AVP – Fairness Analysis Analyst (BFSI), Asit C Mehta Funding Intermediates.
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