In Pandemic Year, HDFC Pips SBI On Credit Card Use

In January 2020, SBI had 1,02,37,289 outstanding credits cards at the end of the month. This number rose to 1,16,41,581 in January 2021. This is a 13.7 percent increase in outstanding credits cards.

In January 2020, HDFC had 1,41,74,067 outstanding credits cards at the end of the month. This number rose to 1,52,54,839 in January 2021, a 7.6 percent increase in outstanding credits cards.

But this fact hides another fact, SBI in January 2020, had Rs 12,29,026 lakh value of transactions but this came down to 12,17,756 in January 2021, a 0.9 percent decrease in value of transactions.

HDFC in January 2020, had Rs 19,58,419 lakh value of transactions. this rose to 20,15,464 in January 2021, a 7.6 percent increase.

So, the largest Public Sector Bank was doing worse than HDFC.

Moreover, The Average Revenue Per Unit (ARPU) for SBI in January 2020 was Rs 12,005, which came down to Rs 10,460, a 12.8 percent decline.

The Average Revenue Per Unit for HDFC in January 2020 was Rs 13,816, which came down to Rs 13,211 in January 2021, a 4.3 percent decline.

Hence, we can say that Private sectors bank had more transactions during the pandemic period when compared to public sector banks.

In a time, when the credit card use had increased in the country overall, SBI’s decline shows a chink in its strategy.

In total, credit card numbers increased from 5,61,20,245 in January 2020 to 6,10,97,889 in January 2021, an increase of 8.8 percent.

The total volume of transactions decreased from Rs 71,402 Cr. to Rs 65,069 Cr. during the same time.