The latest data shows that credit card spending remains strong despite post-festive cooling. Total spends rose 11.5% year-on-year to ₹1.89 lakh crore in November, even as they fell 12% sequentially from October due to normalisation after the festive season rather than a slowdown in underlying consumption.
Importantly, the November growth rate is nearly double that of the same month last year, driven by higher credit card penetration and sustained growth in e-commerce. Online transactions now account for over 60% of total credit card spending, highlighting the continued shift towards digital consumption.
However, average spending per card has moderated. Per-card spends fell to around ₹16,470 in November from the festive peak in October, though they remain higher than a year ago.
This reflects a shift away from large festive purchases, increased use of EMI options, tighter lending norms amid rising delinquencies in unsecured loans, and greater use of UPI for small-value payments.
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Private sector banks continue to dominate credit card spending, accounting for about 74% of total spending, though their share has declined over the past year. Public sector banks have gained ground, raising their share to 20.8% through aggressive card issuance, particularly in mass-market and co-branded segments.
Despite these shifts, the market remains highly concentrated, with a handful of large private and public sector banks accounting for nearly 80% of total spending. HDFC Bank continues to lead in both card issuance and spending, followed by SBI Card, reflecting ongoing consolidation in India’s credit card market.
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