Banks ET said he expects the momentum to continue and credit card spending to surpass all previous records during the festive months, India’s peak consumption season.
Several of them, including HDFC Bank, Axis Bank and
who have been aggressive in signing up credit card customers in recent months, have lined up new offers to encourage customers to use their cards for festive purchases.
“June’s credit card spending figures were very strong, signifying increased consumer confidence, and these trends are continuing into July and early August,” said Sumit Bali, head of the bank. retail at Axis Bank.
“We expect spending to peak in October. Spending across all categories has been very good, whether travel, entertainment or discretionary.”
HDFC Bank, the market leader in credit cards with over 22% market share, is about to launch the fourth edition of “Festive Treat”, a program to promote spending on its cards during the holiday season. It will make more than 300 offers at the national level and more than 9,000 at the regional level under the program.
“Our Festive Treat plan would encompass all segments of merchant partners to provide great usage offers to customers. This will include ties with major e-commerce partners like Amazon and Flipkart, food delivery partners like Swiggy and travel partners like MakeMyTrip and GoIbibo and beauty partners like Myntra and ,” said Parag Rao, Group Head – Payments at HDFC Bank. “There are new products in association with strong partners that will address the shopping segments , lifestyle and travel.”
According to RBI data, banks nationwide reported a net addition of 1.8 million credit cards in June. This brought the total number of credit cards to 78.7 million, up 25.3% from the previous year.
HDFC Bank topped the list for signing up new customers, adding over 3,86,000 cards, followed by Kotak Mahindra Bank (2,63,000) and
Ambuj Chandna, president of consumer assets at Kotak Mahindra Bank, said credit card issuance and usage had increased as risk patterns in the industry stabilized.
A recovery in travel and increased spending on items like clothing also point to a broad-based consumer recovery, which is driving spending on cards, he said, adding: “We’re hitting lifetime highs every month now. ; so the holiday season looks very promising.”
A newcomer to the world of cards,
Bank, too, has lined up lucrative deals in partnership with merchants for the holiday season.