Credit Card Spending Jumps 23% to Rs 2.17 Lakh Crore in September
India’s credit card spending surged by 23% year-on-year to reach Rs 2.17 lakh crore in September 2025, driven by festive season offers, GST rate cuts, and increased card issuances that boosted discretionary consumption.
Key Takeaways
- Credit card spending hits Rs 2.17 lakh crore in September, up 23% YoY
- Outstanding cards reach 11.3 crore, growing 7% YoY
- Per-card spending rises to Rs 19,144, showing 15% annual growth
- Public sector banks gain market share with 30% higher per-card spending
Robust Growth Trends
Month-on-month spending grew by 13%, indicating strong consumer sentiment during the festive period. The total number of outstanding credit cards increased to 11.3 crore, up 7% from the previous year and 1% from August.
Private sector banks led this expansion through strategic acquisitions, co-branded partnerships, and enhanced digital offerings. However, growth moderated compared to the previous year’s 14% expansion as banks focused on higher-quality customers amid rising delinquencies in unsecured lending.
Market Share Shifts
Public sector banks gained significant traction, with their spending market share rising above 20%. PSB customers showed a remarkable 30% jump in per-card spending to Rs 16,927, reflecting improved digital engagement and competitive reward structures.
Meanwhile, private bank customers spent an average of Rs 20,011 per card, up 3% year-on-year.
Credit Health Indicators
Outstanding credit card balances stood at Rs 2.82 lakh crore in September, slightly lower than August’s Rs 2.89 lakh crore but up 3.7% from the previous year.
The share of credit card balances in total retail loans declined by 40 basis points to 4.5%, indicating healthy repayment trends amid sustained credit demand.
