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State Bank of India Dominates Debit Card Market Despite Challenges
December 06, 2023
India’s largest public sector lender, the State Bank of India (SBI), maintained its stronghold in the debit card market, commanding an impressive 26% share in October 2023, according to the latest data from 1Lattice.
Following SBI, other major players in the debit card market included Bank of Baroda with a 9% market share, Canara Bank at 6%, and Bank of India, Union Bank, and HDFC Bank each holding approximately 5% market share. Axis Bank emerged as the frontrunner in year-on-year growth for the debit card segment, boasting a substantial 42% increase. Bank of Baroda and Canara Bank also demonstrated strong growth with 18% and 15%, respectively, while HDFC Bank and Bank of India registered a growth of 9% each.
Despite retaining its top position, SBI faced a notable degrowth of about 9% in October. Punjab National Bank and ICICI Bank experienced the highest degrowth, at 11% and 8%, respectively. Over the past four years, debit and credit card transactions have shown a consistent Compound Annual Growth Rate (CAGR) of 20% and 19%, respectively. A recent report by PWC India highlighted 71 million active credit cards in FY22.
In the credit card market, HDFC Bank continued to lead with a 20% share, followed by SBI Cards, ICICI Bank, and Axis Bank with 19%, 17%, and 14% market share, respectively. Bank of Baroda and Axis Bank exhibited remarkable year-on-year growth, at 47% and 46%, securing market shares of 2% and 14%, respectively. Global leaders in the credit card segment, like American Express, registered a 5% year-on-year growth, holding a 1% market share, albeit below expectations. The data suggests a promising 16% year-on-year growth in card-based transactions for the next four years.
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