HSBC Global Research has spotlighted three major players in the credit card industry: HDFC Bank, SBI Cards, and ICICI Bank. These financial institutions are not only leading the charge but are also forecasted to continue their dominance in a market that is experiencing significant shifts. While smaller competitors are consolidating, these giants are maintaining a steadfast grip on their market share and witnessing solid growth in card spending.

Unmatched Market Presence

The trio of HDFC Bank, SBI Cards, and ICICI Bank has claimed a staggering 75% to 80% of total net credit card issuances over the past year. This commanding share illustrates their consistent leadership in the industry, setting them apart from smaller players who are currently navigating a phase of consolidation.

Resilience in Spending Growth

Even amid rising fees and the growing influence of UPI payments, these banks have shown remarkable resilience in credit card spending. HSBC notes that while factors like low customer additions and reward devaluations could pose long-term challenges, these banks have effectively managed to sustain robust spending levels.

• Key Points:
  • Increased fees are becoming common.
  • Reward program changes are impacting customer engagement.
  • UPI’s rise is altering payment dynamics.

Strategic Cost Management

As the credit card landscape evolves, larger issuers are recalibrating their strategies. Many banks are opting to reduce marketing expenditures and adjust reward structures to maintain spending momentum. According to HSBC, “Issuers are rationalizing costs through strategies like reward devaluation and decreased marketing budgets.” This proactive approach helps them stay competitive during a period marked by industry rationalization.

The Current Landscape of Indian Credit Cards

HSBC’s latest findings reveal a slowdown in overall credit card issuances in India, with net issuance hitting a two-year low in February 2025. Nevertheless, HDFC Bank, SBI Cards, and ICICI Bank collectively accounted for nearly 80% of all new credit cards issued in the first eleven months of FY25. “The dominance of these three players continues to grow as others take a step back,” the report stated, emphasizing their stronghold in Cards-in-Force (CIF).

Credit Card Spending on the Rise

Despite the decline in net issuances, credit card spending saw a significant uptick in February 2025. HSBC reported an impressive 18% year-on-year growth in spending through credit and debit cards, alongside UPI transactions, amounting to approximately Rs 7.9 trillion.

• Market Winners:
  • HDFC Bank increased its market share by 22 basis points month-on-month.
  • Axis Bank and IndusInd Bank gained 32 and 48 basis points, respectively.
  • In contrast, ICICI Bank and Kotak Mahindra Bank experienced slight declines in their market shares.

In conclusion, the credit card sector in India is witnessing a dynamic shift, with HDFC Bank, SBI Cards, and ICICI Bank leading the way. Their strategic adaptations and consistent growth in spending ensure they remain at the forefront of the industry, even as the marketplace undergoes significant changes.