New Delhi [India]March 6 (ANI): According to a report by Ekmil, a stock market firm, the credit card sector in India is looking into a recession, in which dysbersment growth is falling to a four -year low.
The report, which provides insight into the credit card segment for January 2025, highlights the decline in total expenditure and the decline in the number of credit cards in the prevalence.
Show full article
The total credit card expenditure in January was Rs 1.84 trillion, a month-by-month (MOM) declined in December 2024 to fall from Rs 1.88 trillion.
Despite this decline, the expenditure on the basis of year-on-year (YOY) was 14 percent. The mother’s decline was mainly due to a high base in December, when it is usually spent due to the end of the year end and the new year celebrations.
The report also states that the amount of transaction follows a uniform trend, 1 percent fell to the mother to transact 430 million. However, the increase of Yoy transactions was strong at 31 percent.
Despite this, the report states that this was the weakest yoy development in the amount of transactions since March 2024, indicating a continuous recession in the region.
The report states, “In particular, it represents the weakest Yoy development in the amount of transaction since March 2024, underlining the frequent recession trend within the region”.
In January, the number of outstanding credit cards declined by 1.2 million, which rose from 110 million to 109 million in December. Average expenses per card also dropped slightly from Rs 17,093 to Rs 16,911 in the previous month.
Meanwhile, the top five banks continued to dominate the credit card market, maintained a 75% stake in terms of arrears cards.
The report states that while the use of credit card is increasing on an annual basis, the speed of expansion is slowing down. Spending and decline in menstrual development in the amount of spending and transaction -cautious consumer spirit and potential saturation in the market.
As the region moves forward, banks and financial institutions may require to use innovative offerings and targeted incentives to use and maintain highly competitive credit card market growth. (AI)
This report has been auto-generated from Ani News Service. ThePrint does not have any responsibility for its content.