IDFC First Bank Limited

Stock Opportunities
1859

RBI publishes credit card stats for each month on this website:
https://m.rbi.org.in/scripts/ATMView.aspx?atmid=115

Latest one available is for June here: https://rbidocs.rbi.org.in/rdocs/ATM/PDFs/ATM06210F02FA081F0147998F4EBD89AE2D26DA.PDF

I analysed IDFCF and several other banks. Here are the results. It’s quite surprising at least to me:

Raw data

Bank PoS Transactions Value of Transactions (in Lac) Outstanding cards Transaction / card Value / Transaction Spend / card
IndusInd Bank 3560605 257051 1569485 2.268645447 7219.306831 16378.04758
IDFCF 1247150 59461 386801 3.224267776 4767.750471 15372.50421
American Express 3603920 179357 1482771 2.430530406 4976.719794 12096.06878
HDFC Bank 40002494 1753372 14828277 2.697716936 4383.15671 11824.51609
Citi Bank 10369231 302718 2603989 3.982056376 2919.387175 11625.16432
ICICI Bank 28302499 1188705 11034268 2.564963892 4200.000148 10772.84873
SBI 31096314 1221507 12044135 2.581863621 3928.140808 10141.92385
Axis Bank 14465088 519105 7136582 2.026892986 3588.675022 7273.860232
Kotak Bank 4307469 150400 2355745 1.828495444 3491.609574 6384.392199
Federal Bank 32377 819 14803 2.187191785 2529.573463 5532.662298

Conclusions

  1. Indusind has highest spending per card. Something worth understanding and tracking. I dont track indusind specifically. Specially impressive is their spend/transaction. How are they able to incentivise users to make such large average transactions?
  2. Citi bank has highest average transactions per month at around 4 but value per transaction being low it is somewhere along middle on spend per month per card.
  3. IDFCF ranks second overall due to its second rank in Transactions per card per month (3.2) and third rank in value of each transaction (4800 Rs per transaction). Specially the high transaction value shows that client base is very similar or all the banks (perhaps except. federal).

Caveats

  1. I only considered june data. Ideally we would consider for several months or a full year to account for seasonality. Since IDFCF only recently started scaling up this biz, existence of that data will take time.
  2. IDFCF credit card program is new and probably not yet stable. The “leadership” position could be temporary. Better to look at it a year from now instead of getting to excited. Still very interesting statistics.
  3. This only talks about volume and value data not credit quality.
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