Credit Card Spending Rose 23 Pc In September

In September credit card spending rose by 23 per cent year-on-year and by 13 per cent sequentially to Rs 2.17 lakh crore, reaching an all-time high for the first time since 2020.

This growth is attributed to bank-led festive offers, increasing consumer demand driven by the festive season spending, spurred by GST reduction, along with increased card issuances for the month. The total number of outstanding credit cards grew from 10.6 crore in September 2024 to 11.3 crore in September 2025, reflecting a steady increase in card penetration.

However, this growth was marginally lower than the 24 per cent growth seen in the same period last year, according to Care Ratings.

Growth in September was driven by private banks through acquisition strategies, co-branded partnerships, and the enhancement of digital offerings. However, this growth was slower than September last year due to a focus on higher-quality customers due to delinquencies in the unsecured segments.

The share of private banks in the credit card spending market came down by 130 basis points to 74.2 per cent against the same month last year. Meanwhile, public sector banks increased their share to 21.2 per cent from 18.4 per cent. The PSB market remains concentrated among a few large players.

Private banks’ average spending per card rose 3 per cent to Rs 20,011, while public sector banks experienced a more significant increase of 30 per cent, with per-card spending rising to Rs 16,927.

The share of credit card outstanding balances in total retail loans declined to 4.5 per cent in September 2025 from 4.9 per cent a year earlier, indicating a relative slowdown in credit card outstandings even as other retail segments expanded