By Shashank Didmishe
Credit card spends within the banking system bounced again in May on a year-on-year foundation after witnessing a contraction in April led by wholesome enchancment in transactions on the e-commerce and point-of-sales (PoS) terminals. Overall bank card spending grew by 8% month-on-month in May to Rs 1.14 trillion.
The bank card spending rose 118% on 12 months whereas the variety of transactions grew by 77% on 12 months to 238 million, as per information launched by the Reserve Bank of India (RBI).
Consumers spent Rs 714 billion on e-commerce platforms utilizing bank cards in May. Credit card spends on e-commerce platforms rose 8% on 12 months. On the opposite hand, bank card spends at PoS terminals improved 6% on 12 months to Rs 422 billion. The share of bank card spending on e-commerce platforms improved 60 foundation factors in May whereas the share of spending at PoS terminals decreased.
The bank card transactions in April declined because it was a seasonally weak month for retail spending, analysts had stated, including that the yearly traits on spending are anticipated to stay sturdy. The rising share of e-commerce transactions in bank card transactions is predicted to help in sustaining the expansion in card spends, analysts at a home brokerage stated in a report right this moment.
The whole variety of playing cards issued stands at 77 million because the banks issued 1.7 million bank cards in May. HDFC Bank has maintained its management place with the lender issuing 3.85 lakh bank cards throughout the month taking the entire variety of bank cards issued to 17.2 million. Other banks similar to State Bank of India, ICICI Bank and Axis Bank too posted a rise within the variety of playing cards issued in May. In distinction, personal sector lender Kotak Mahindra Bank registered a decline within the whole variety of bank cards issued. In May, the financial institution issued 1.81 lakh playing cards as towards 2.29 lakh playing cards issued within the earlier month. Foreign banks together with CitiBank, Bank of America and Standard Chartered Bank posted a decline within the variety of playing cards issued throughout the month.
Source: www.financialexpress.com”