India’s Credit Card Base Grows 9.5% in September, but Spending Falls 6.2%

India’s credit card market continued to expand in September 2026, with the total number of credit cards in circulation rising 9.5% year-on-year to 123.8 million, according to a report by Jefferies. However, overall credit card spending declined compared with the same month last year due to a higher base, supported by post-GST spending and the earlier timing of the festive season in the previous year.

How many total credit cards in market?

The total number of credit cards in circulation, also known as cards-in-force (CIF), grew 9.5% year-on-year in September, compared with 9% growth in August. Despite this increase, total credit card spending fell 6.2% year-on-year during September, reversing the 5.5% growth recorded in the previous month. On a monthly basis, however, industry-wide spending increased 0.7% to around ₹2 trillion. Jefferies said the year-on-year decline mainly reflected higher spending in the previous year due to post-GST purchases and the earlier timing of the festive season.

Performance of Card Companies

Among major credit card issuers, SBI Cards recorded a slight improvement in its card base growth to 7.7% year-on-year in September, compared with 7.6% in August. The company maintained a 19% share of the total credit card market. It added 0.21 million cards during September, up from 0.19 million in August, accounting for 18% of the industry’s total net additions during the month.

Other major banks reported mixed growth in their credit card portfolios. HDFC Bank and ICICI Bank recorded year-on-year growth of 8% each, while Axis Bank’s credit card base increased 7%. In contrast, IndusInd Bank reported a 6% year-on-year decline in its credit card base.

SBI Cards, however, experienced a sharper decline in spending. Its total credit card spending fell 14% year-on-year in September, while its share of overall industry spending declined by 33 basis points month-on-month to 17.2%. Its share of online spending fell by 84 basis points to 16%. However, its share of point-of-sale (POS) transactions increased by 52 basis points to 18.5%.

HDFC Bank gained a larger share of industry spending during the month. Its share increased by 167 basis points month-on-month to 32%. ICICI Bank’s share declined by 81 basis points to 15%, while Axis Bank maintained a relatively stable share of around 11%.

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The report also highlighted differences in spending per credit card among major issuers. SBI Cards’ average spending per card declined to ₹15,100 in September from ₹15,400 in August, remaining below the industry average of ₹16,400. Its average online transaction value remained unchanged at ₹2,400, compared with the industry average of ₹4,100. However, its average POS transaction value increased to ₹5,900 from ₹5,400 in August, staying above the industry average of ₹2,700.

HDFC Bank recorded an increase in average spending per card to ₹23,800 in September from ₹22,600 in August. In contrast, spending per card declined month-on-month across most other major credit card issuers, indicating a moderation in customer spending activity.

Meanwhile, the industry’s receivables-to-spending ratio, measured on a trailing three-month basis, increased by 10 basis points month-on-month to 12.3% in August 2026. This ratio tracks outstanding credit card receivables in relation to spending over the period.

Use of Credit Cards

The report also highlighted continued growth in India’s broader retail digital payments market. Retail digital transactions, excluding National Electronic Funds Transfer (NEFT), increased 16.4% year-on-year to ₹44 trillion during the period. Credit cards accounted for 4.64% of total retail digital spending, marking an increase of 12 basis points compared with the previous period. However, their share remained 110 basis points lower than in the corresponding period last year.

Overall, the data indicate that India’s credit card base continued to grow in September 2026, even as spending weakened on a year-on-year basis. While SBI Cards faced a decline in spending and market share, HDFC Bank gained a larger share of industry spending. The figures also point to continued growth in digital transactions, despite changes in the contribution of credit cards to overall retail digital payments.

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