EUR 120.00 For Business Accounts Only

MOSL: FINANCIALS - DIGITAL PAYMENTS TRACKER: April-21: Outstanding credit cards grew 8.5% YoY; spends declined 18% MoM

FINANCIALS - DIGITAL PAYMENTS TRACKER: April-21: Outstanding credit cards grew 8.5% YoY; spends declined 18% MoM

 

• The banking system reported net additions of ~211k new credit cards in Apr'21 (47% MoM decline). This has taken the total credit card base to ~62.3m (8.5% YoY growth) v/s a 7.5% YoY growth in Mar'21.
• Among major players, ICICIBC reported strong (18%) YoY growth, followed by IIB (15.2%), RBK (14.4%), and SBICARD (13.6%) in Apr'21. ICICIBC and SBICARD were the largest credit card acquirers, adding nearly ~248k new cards. Amongst major players, ICICIBC/SBICARD/AXSB/RBK added ~142k/~106k/~56k/~44k cards. On the other hand, KMB/HDFC/ AMEX/CITI saw a decline of ~103k/~66k/ ~22k/~12k to their card base.
• Credit card spends fell 18% MoM to INR594b in Apr'21. However, the same grew 183% YoY due to a low base of Apr'20 (flat on a two-year CAGR). ICICIBC reported the lowest decline of 12.5% MoM in Apr'21, while other major players reported a 15-21% dip. This is mainly due to a lockdown in various states over the last few months.
• SBICARD/ICICIBC continue to witness a strong performance, resulting in an increase in their market share in outstanding cards by ~90-145bp to 19.2%/17.2% in Apr'21. RBK and IIB have largely maintained their market share, while other major players (HDFCB, AXSB, CITI, KMB, and AMEX) have lost market share.

The recovery in economic activity and rising share of e-commerce transactions would enable spends to witness a sharp recovery momentum. SBICARD would continue to gain market share, led by its diverse acquisition channels. We maintain a Buy on SBICARD with a TP of INR1,200.