Credit card spends fell 2.4 per cent month-on-month in June after touching a record high of ₹1.41-lakh crore in May, surpassing the previous high of ₹1.37-lakh crore in March.

Spends in June were at ₹1.37-lakh crore, with most major issuers registering a decline during the month, barring State Bank of India, according to information by the Reserve Bank of India (RBI).

According to the data, 64 per cent of the credit card spends in June were for e-commerce payments, and 36 per cent for PoS (point-of-sale) transactions, same as the previous month.

Of the top 4 issuers, SBI was the only issuer to see an increase in spends at 5.0 per cent to touch ₹24,981 crore. HDFC Bank, ICICI Bank, and Axis Bank saw a decline of 2-6 per cent in credit card spends during the month. Even so, HDFC Bank continued to lead in terms of spends, which stood at ₹38,716 crore in June.

Other large issuers, such as Kotak Mahindra Bank, RBL Bank, YES Bank, IndusInd Bank, Standard Chartered Bank, and Bank of Baroda, too, saw a decline in card spends.

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Spends have now stayed over the ₹1-lakh crore mark for the 16th consecutive month. Total credit cards spends in FY23 were ₹14.3-lakh crore, 47 per cent higher year-on-year.

Cards added

Card additions for the month also slowed down substantially, with the industry adding only 9.4 lakh cards in June, compared to more than 12 lakh credit cards each in April and May.

Total cards-in-force stood at 8.9 crore at the end of June, 1.1 per cent higher month-on-month, against an increase of 1.4 per cent in April and May. Credit cards-in-force as of March 31 stood at 8.5 crore, up 15.9 per cent in FY23.

HDFC Bank also continued to lead in terms of the increase in number of cards, adding 2.28 lakh cards during the month to a total of 1.84 crore cards as of June 30, maintaining its position as the largest card issuer. It was followed by SBI, which added 2.05 lakh cards, taking its cards outstanding to 1.73 crore cards, the second highest in the industry.

ICICI Bank added 1.23 lakh cards. However, the number for Axis Bank declined sharply to 41,019 cards, compared to 1.96 lakh cards in May.