Consumer leverage has declined significantly during the first month of lockdown with card spending declining significantly after lockdown was imposed in the last week of March to tackle the Covid-19 pandemic. The total value of credit and debit cards transactions has decelerated from Rs 1.51 lakh crore in January 2020 to merely around Rs 50,000 crore in April, according to a SBI report.
Per card transaction has fallen from as high as Rs 12,000 to Rs 3,600 in case of credit cards and Rs 1,000 to Rs 350 in the case of debit cards. “It could be also possible that consumer spending has shifted from luxury purchases to purchases of daily essentials and groceries,” SBI’s Ecowrap report said.
“Interestingly, even as credit card spending has significantly declined during April, our estimates of the short-term consumer leverage (presented as sum of credit card, personal loans, advances against FD, shares, bonds outstanding etc) which has reached a peak in FY18 at Rs 1.56 lakh crore declined significantly to Rs 1.29 lakh crore,” it said.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines