Credit card spending surges 23% to Rs 2.17 lakh crore YoY in September

New Delhi [India], November 9 : Credit card spending in India rose sharply by 23 per cent year-on-year (YoY) to Rs 2.17 lakh crore in September, driven by festive season offers, GST rate cuts, and a rise in card issuances that boosted discretionary consumption, according to a report by CareEdge.

On a month-on-month (MoM) basis, spending grew 13 per cent, underscoring robust consumer sentiment, though the expansion was slightly lower than the 24 per cent growth recorded a year earlier.

The total number of outstanding credit cards increased to 11.3 crore in September 2025, up 7.0 per cent YoY and 1.0 per cent MoM, from 10.6 crore in the same period last year.

The rise reflects continued adoption and usage, primarily driven by private sector banks (PVBs) through strategic acquisitions, co-branded partnerships, and enhanced digital offerings.

However, the pace of growth moderated compared to the 14 per cent expansion seen in the previous year, as banks prioritised higher-quality customers amid rising delinquencies in the unsecured lending segment.

Market share of Public Sector Banks declined 130 basis points (bps) to 74.2 per cent from 75.5 per cent a year earlier, while public sector banks (PSBs) gained traction due to wider outreach in tier-2 and tier-3 cities, government initiatives, and stronger distribution.

PSBs' spending market share rose above 20 per cent, concentrated among larger banks, while smaller PSBs contributed a modest 0.5 per cent.

Per-card spending reached Rs 19,144 in September, marking a 12.2 per cent MoM and 15 per cent YoY rise, supported by festive demand, e-commerce growth, and enhanced rewards programs.

PVB customers spent an average of Rs 20,011 per card, up 3 per cent YoY, while PSBs registered a stronger 30 per cent jump to Rs 16,927, reflecting their improving digital engagement and competitive reward structures.

Meanwhile, outstanding credit card balances stood at Rs 2.82 lakh crore in September, slightly down from Rs 2.89 lakh crore in August but up 3.7 per cent YoY from Rs 2.72 lakh crore.

The share of credit card balances in total retail loans edged down 40 bps to 4.5 per cent, suggesting healthy repayment trends amid sustained credit demand.

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