Credit Card Expenditures Rise 8.1% to Rs 1,990 Billion in January: New Insights
Synopsis
In a recent report, credit card spending in India has shown an **8.1% annual increase**, reaching **Rs 1,990 billion** in January 2026, despite a **2.7% month-on-month decline**. Key banks show varied performances, indicating shifts in market dynamics.
Key Takeaways
Credit card spending in January 2026 reached **Rs 1,990 billion**.
There was a **8.1% annual growth** in spending.
Month-on-month spending declined by **2.7%**. **State Bank of India** faced the largest spending drop. **HDFC Bank** improved its market share despite overall spending decreases.
New Delhi, Feb 25 (NationPress) Credit card expenditures saw a yearly increase of 8.1%, reaching Rs 1,990 billion in January 2026, according to a report released on Wednesday.
However, Asit C. Mehta Investment Intermediates Limited compiled data indicating a 2.7% decline in spending compared to the previous month.
The report highlighted that the drop in spending was primarily influenced by reduced transactions from the top four banks.
State Bank of India experienced the most significant decline, with spending decreasing by Rs 18.7 billion, or 4.7% month-on-month.
ICICI Bank also saw a decline of Rs 16.9 billion or 4.6%, while HDFC Bank and Axis Bank reported decreases of 1.3% and 2.7% respectively.
Despite the monthly reduction, the industry observed a healthy year-on-year growth in transaction volumes.
The total number of transactions reached 537 million in January, remaining largely stable compared to December but showing an increase of 24.9% from the previous year.
Nevertheless, the growth rate was below historical averages, suggesting a slowdown in momentum, as noted in the report.
The decline in spending was widespread, affecting both online and point-of-sale transactions.
Online spending dropped by 2.5%, while point-of-sale spending fell by 3.17% compared to December.
In terms of market share, HDFC Bank managed to improve its position despite the overall decrease in spending.
Its market share increased by 43 basis points month-on-month to 28.4%, due to a relatively softer decline in spending compared to competitors.
In contrast, SBI and ICICI Bank lost 39 basis points and 34 basis points respectively due to more significant declines.
Among mid-sized banks, Yes Bank and Federal Bank showed relatively better performance. Notably, Federal Bank continued to grow its credit card base robustly, achieving 83% year-on-year growth in cards outstanding.
The bank added approximately 0.12 million cards within the month, bringing its total cards in force to 2.1 million.
IDFC First Bank also demonstrated steady growth, with its card portfolio expanding by 30% year-on-year, as outlined in the report.
Point of View
It's vital to highlight the dual nature of the report—while year-on-year growth in credit card spending is promising, the month-on-month decline raises questions about consumer spending habits and the influence of major banks. This trend could signal a shift in the financial landscape, necessitating careful observation.
NationPress
20 Jun 2026
Frequently Asked Questions
What was the total credit card spending in January 2026?
The total credit card spending in January 2026 was **Rs 1,990 billion**, reflecting an **8.1% increase** from the previous year.
Which bank experienced the largest decline in spending?
The **State Bank of India** experienced the largest decline, with spending decreasing by **Rs 18.7 billion**, or **4.7%** month-on-month.
How many transactions occurred in January 2026?
There were **537 million transactions** recorded in January, which is largely stable compared to December but shows a **24.9% increase** year-on-year.
Did HDFC Bank gain market share despite the decline?
Yes, **HDFC Bank** gained market share, increasing by **43 basis points** month-on-month to **28.4%**, despite lower overall spending.
What is the growth rate of IDFC First Bank's card portfolio?
The **IDFC First Bank** recorded a **30% year-on-year growth** in its credit card portfolio, indicating strong performance.
