Top 4 Banks In Credit Card Market: Check Out What They Offer

Have you ever wondered what’s behind the explosive growth of India’s credit card sector? It’s not just about swiping cards anymore.

With the rapid rise of digital technology and the widespread adoption of contactless payments, India’s credit card industry is undergoing a transformation like never before.

In fact, in May 2023, we witnessed record-breaking credit card spending, and the numbers are staggering.

According to the latest data from the Reserve Bank of India (RBI), credit card spending soared to INR 1.4 trillion, marking an incredible 5% month-on-month increase this year.

So, what’s driving this remarkable change, and who are the top players in India’s credit card market?

In this article, we’ll delve into the details, exploring the top four banks that are dominating this market and offering a diverse range of credit cards to cater to various needs and preferences.

1. HDFC Bank – The Market Leader

HDFC Bank, one of India’s largest private banks, stands at the forefront of the credit card market.

As of September 2022, the bank boasts over 170 million active credit cards, making it the country’s largest card issuer.

According to RBI data, HDFC Bank commands a significant 28.4% market share in credit card spending as of July 2022.

Among HDFC’s most popular credit cards are:

HDFC Bank Infinia Credit Card
HDFC Bank Diners Club Black Credit Card
HDFC Bank Regalia Credit Card
HDFC Bank Millennia Credit Card
HDFC Bank Diners Club Privilege Credit Card
HDFC Bank MoneyBack Plus Credit Card

2. State Bank of India (SBI) – The Public Sector Giant

SBI, India’s largest public sector bank, offers a diverse range of credit cards under its subsidiary, SBI Card. SBI Card, a non-banking financial company (NBFC), had its successful initial public offering in 2020.

It ranks as the second-largest card issuer in India, catering to various categories, including lifestyle, rewards, shopping, travel, and fuel.

Some of the popular SBI credit cards include:

SBI Elite Credit Card
SBI Card PRIME
SBI Simply Click Card
BPCL SBI Card
SBI Simply SAVE Card
BPCL SBI Credit Card

3. Axis Bank – Expanding Its Reach

Axis Bank, the third-largest credit card issuer in India after HDFC Bank and SBI Card, has gained prominence, especially following its merger with CitiBank.

This merger allowed Axis Bank to acquire Citi’s affluent and premium credit card business, enhancing its portfolio significantly.

Axis Bank offers an extensive range of credit cards tailored to cater to the diverse needs and preferences of its customers.

Some of the popular Axis Bank credit cards include:

Axis Bank ACE Credit Card
Flipkart Axis Bank Credit Card
Axis Bank Vistara Credit Card
Axis Bank Neo Credit Card
Axis Bank My Wings Credit Card
Axis Bank Select Credit Card

4. ICICI Bank – The Private Sector Powerhouse

ICICI Bank, India’s second-largest private sector bank, ranks among the top credit card issuers in the country.

Known for its vast array of credit cards covering dining, shopping, movies, travel, and more, ICICI Bank offers cards tailored to various spending categories.

The bank also boasts a robust rewards program, including a variety of no-annual-fee credit cards such as the Amazon Pay ICICI credit card or ICICI Platinum Chip credit card.

Some of the popular ICICI Bank credit cards include:

ICICI Sapphiro Credit Card
ICICI Coral Credit Card
ICICI Rubyx Credit Card
ICICI Platinum Chip Credit Card
Amazon Pay ICICI Credit Card
ICICI Bank HPCL Super Saver Credit Card

Credit Card Growth in India

Despite being an underpenetrated market, India’s credit card segment is experiencing significant growth.

The majority of the population still doesn’t possess a credit card, but credit card issuers are actively working to change this by introducing enticing benefits and raising awareness.

The table below illustrates the steady upward trend in credit card issuance volumes over the years, even amidst the challenges posed by the COVID-19 pandemic and RBI’s regulations on credit card issuers.

March 2018: 37 million
March 2019: 47 million
March 2020: 57 million
March 2021: 62 million
March 2022: 73 million
May 2023: 87.4 million

So, the credit card landscape in India is evolving rapidly, and these four banks – HDFC Bank, SBI, Axis Bank, and ICICI Bank – are leading the charge.

Their extensive portfolios of credit cards cater to various lifestyles and preferences, ensuring that there’s something for everyone.

As India’s credit card industry continues to grow, more customers will gain access to these valuable financial tools, further propelling the nation’s economic development.