Credit card spending in India hit record high of Rs 1.5 lakh crore in August

According to Zee Business Research, in August, 9.13 crore credit cards were used as against 8.9 crore in July, which implies an increase of 2.5 per cent.

Meanwhile, some banks also recorded an increase in the issuance of credit cards (Image- Pexels)

Credit card spending in India touched a record high of Rs 1.5 lakh crore in August 2023 on the back of healthy growth in point-of-sale transactions and e-commerce website payments. There was also a surge in expenses related to utility payments, such as travel and entertainment. This is the second consecutive month after July where spending has surged.

According to Zee Business Research, in August, 9.13 crore credit cards were used as against 8.9 crore in July, which implies an increase of 2.5 per cent.

Credit card spending increased by 32.2 per cent on a year-on-year (YoY) basis and 2.7 per cent month-on-month (MoM) in August.

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On an MoM basis, point-of-sale transactions increased by 6.2 per cent in August, and e-commerce transactions increased by 2.9 per cent. The credit card spending was mostly seen in Tier 2 and Tier 3 cities.

Among banks, American Express credit card spending increased by 10.1 per cent MoM while SBI Card's spending rose by 6 per cent. Kotak Mahindra Bank's spending increased by 4.5 per cent, YES Bank by 3.6 per cent, ICICI Bank by 3 per cent and Axis Bank by 0.5 per cent. Conversely, HDFC Bank's credit card spending slipped 0.1 per cent.

Meanwhile, some banks also recorded an increase in the issuance of credit cards. Individually, YES Bank recorded a 5.9 per cent increase in August as compared to July, ICICI Bank logged a 2.1 per cent rise in card issuing, Kotak Mahindra Bank recorded a 2 per cent increase, Axis Bank 1.7 per cent, and State Bank of India, or SBI, witnessed a 1.3 per cent surge.

According to the research, a further increase in card spending is expected during the festival season.

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