India Credit Card Spending Slips 5.9 Percent in September
Credit card spending in India dropped 5.9 per cent year-on-year to Rs 2.04 trillion in September, marking the first annual contraction since February 2021. The contraction broke a lengthy expansion streak driven largely by a high base from the previous year, according to a report by CareEdge.
In September 2025, spending had surged by nearly 23 per cent compared to September 2024, hitting Rs 2.17 trillion. That surge followed Goods and Services Tax rate cuts and an unusually early start to festival shopping. This year, festival sales shifted into October, leaving September without the same promotional tailwinds.
Online Purchases Contract While Point-of-Sale Transactions Grow
Online credit card spending fell 12.5 per cent year-on-year to Rs 1.26 trillion, down from Rs 1.44 trillion in the previous year. Point-of-sale transactions moved in the opposite direction, registering 7.18 per cent growth to reach Rs 77,751.47 crore compared with Rs 72,543.89 crore a year earlier.
Major lenders experienced starkly different trajectories across their portfolios. HDFC Bank recorded a 7.52 per cent annual increase in spending to Rs 65,139.72 crore, alongside a 6.22 per cent monthly rise. SBI Card, the country’s largest standalone credit card issuer, reported a 14.09 per cent year-on-year decline to Rs 34,895 crore. ICICI Bank saw an even steeper drop, with spending falling 26.26 per cent annually to Rs 30,911.48 crore. Axis Bank reported an 11 per cent annual decline to Rs 23,148.67 crore.
Banks Accelerate Card Additions Ahead of October Festivals
Even as spending contracted, banks continued aggressively expanding their customer bases. The total number of credit cards in force climbed to 125.31 million in September. Monthly card additions rose 10.5 per cent year-on-year, marking the fastest growth in additions since November 2024.
HDFC Bank added 280,353 cards to reach 27.37 million total cards. SBI Card added 208,026 cards to reach 23.16 million, Axis Bank added 259,525 cards to total 16.55 million, and ICICI Bank added 29,621 cards to reach 19.86 million. Saurabh Bhalerao, director, CareEdge Ratings, noted that customers are using their cards more often for smaller payments, with expectations for spending to rise to Rs 2.28–2.38 trillion in October.
Frequently Asked Questions About India Credit Card Trends
What caused the year-on-year decline in September credit card spending?
The drop was primarily driven by a high base effect from the previous year, when GST rate cuts and an early start to festival shopping pushed monthly spending to Rs 2.17 trillion.
How did online spending compare to physical store transactions in September?
Online credit card spending fell 12.5 per cent year-on-year to Rs 1.26 trillion, whereas point-of-sale transactions grew 7.18 per cent to Rs 77,751.47 crore.
Which major bank added the most credit cards during the month?
HDFC Bank led all issuers by adding 280,353 new cards in September, bringing its total portfolio to 27.37 million cards in force.
Worth a look