The total credit cards in force increased 1.5% MoM in Sep-2020 to 58.7mn, after increasing 0.3% MoM in Aug-2020. In Sep-2020, all domestic players in the top- 10witnessed net additions to their cards in force, of 1-3% MoM, barring Kotak, which remains cautious on the segment.
Domestic players barring Axis Bank had witnessed net additions to cards in force in Aug-2020 too; however, the pace of additions has sharply ramped-up in Sep-2020. This reflects that banks are reaching closer to their normal rates of card sourcing. The rate of card additions was the highest for IIB, AXSB and SBIN in Sep-2020 versus others.
Credit Card Spend in India
Spends/card declined 2% MoM in Sep-2020, after a 10% MoM growth seen in Aug-2020. Spends/card had earlier declined 59% MoM in April due to the lockdown, after which they continually increased over May to August. Spends/card will likely accelerate in 3QFY21 due to festive-season spending. On a YoY basis, total card-spends were down 16% in Sep- 2020. Average monthly spends per card decreased to ~Rs8,600 in September (~Rs8,700 in August).
