Credit card bills jump 23% to ₹2.17L crore in September
What's the story
India's credit card spending witnessed a massive surge of 23% year-on-year (YoY) to ₹2.17 lakh crore in September. The spike is largely attributed to the festive season offers, GST rate cuts, and an increase in new credit cards being issued. The data was shared by CareEdge, highlighting a strong consumer sentiment during this period.
Spending increase
MoM growth and last year's comparison
On a month-on-month (MoM) basis, credit card spending increased by 13%. This further highlights the robust consumer sentiment during this period. However, it is worth noting that this growth rate was lower than the 24% growth recorded in the same period last year. The total number of outstanding credit cards also increased to 11.3 crore in September 2025, up from last year's figure of 10.6 crore during this time.
Market dynamics
Private sector banks lead the charge
The rise in outstanding credit cards reflects continued adoption and usage, mainly driven by private sector banks (PVBs). These banks have adopted strategic acquisitions, co-branded partnerships, and enhanced digital offerings to boost credit card usage. However, the growth rate has slowed compared to last year's 14% expansion as banks are now focusing on higher-quality customers amid rising delinquencies in the unsecured lending segment.
Market shift
Public sector banks gaining traction
Despite a 130 basis points (bps) decline in market share to 74.2% from last year's 75.5% for PVBs, public sector banks (PSBs) have gained traction. This is due to their wider outreach in tier-2 and tier-3 cities, government initiatives, and stronger distribution networks. PSBs' spending market share has crossed the 20% mark, with larger banks accounting for most of it while smaller PSBs contribute a modest 0.5%.
Spending trends
Per-card spending trends
Per-card spending increased to ₹19,144 in September, a 12.2% MoM and 15% YoY increase. This growth can be attributed to festive demand, e-commerce growth, and improved rewards programs. PVB customers spent an average of ₹20,011 per card (up 3% YoY), while PSBs recorded a stronger jump of 30% to ₹16,927 due to their improving digital engagement and competitive reward structures.