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Credit card spends have picked up again in December, after a single decline, due to a higher base in November and a reduction in the impact of the festive season.
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Which has been recorded above Rs 1 trillion for the 10th consecutive month. Credit cards grew by 10.21 percent to Rs 1.26 trillion in December 2022.
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While HDFC Bank's expenses (MoM) increased by 9.32 per cent month-on-month, ICICI Bank's expenses increased by around 13 per cent.
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Similarly, SBI Cards and Axis Bank saw expenses increase by 13 per cent and 8.8 per cent, respectively, during the period.
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Due to the increasing share, spends in e-commerce transactions have consistently crossed the Rs 1 lakh crore mark.
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Also, travel and hospitality spends have made a strong comeback during Covid after a weak performance. This recovery is helping the rise in credit card spends.
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In fact, credit card spending in October 2022 is set to touch an all-time high of Rs 1.29 trillion on account of festive season spending.
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Meanwhile in December, the net number of cards dropped significantly, with only 580,555 cards added by the banking system.
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This allows home loan borrowers to get the benefit of prepayment without sacrificing their liquidity.