Credit card spending growth has slowed to 16.6 per cent in FY25 so far (YTD FY25) due to restrictions on limits, a series of Reserve Bank of India (RBI) regulations, and increasing stress in the portfolio.
In FY24, credit card spending grew by 27.8 per cent; in FY23, spending was up 47.5 per cent; and it was 54.1 per cent in FY22, data compiled by Macquarie Research showed.
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According to the report, ICICI Bank recorded 4.4 per cent gross credit losses in its credit card portfolio in FY24; in FY23, it was 3.2 per cent. Meanwhile, SBI Cards’ credit losses in the segment were 7.4 per cent in FY24 and 6.2 per cent in FY23.
“We expect the growth slowdown to continue, given the tightened scrutiny and the impact of new RBI regulations. Further, with banks indicating some increased stress in their credit card portfolio, we continue to monitor the impact of the same on credit costs and asset quality,” said Macquarie Research in its report.
Additionally, the net card additions so far in the current financial year (up to August) have declined by 38.3 per cent compared to growth of 41.3 per cent in FY24, the report said.
First Published: Sep 27 2024 | 6:16 PM IST
