India's Credit Card Expenditures Surge 14% to Rs 1.84 Lakh Crore in January
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Synopsis
In January, India's credit card spending surged to Rs 1.84 lakh crore, a significant 14% year-on-year increase. The total transaction volume reached 430 million, showing strong growth despite some monthly fluctuations. Leading banks like HDFC and SBI gained market share, while Kotak Mahindra Bank re-entered the market after an RBI embargo.
Key Takeaways
- Total credit card spending reached Rs 1,84,100 crore in January.
- Transaction volume increased by 31 percent year-on-year.
- Outstanding cards totaled 109 million, a decrease of 1.2 million.
- HDFC and SBI gained market share significantly.
- The RBI lifted the ban on Kotak Mahindra Bank's credit card issuance.
Mumbai, March 4 (NationPress) Total credit card expenditures in India achieved Rs 1,84,100 crore (approximately Rs 1,841 billion) in January, reflecting a robust 14 percent year-on-year growth, according to a report released on Tuesday.
The overall credit card transaction volume for January 2025 reached 430 million, indicating a 31 percent year-on-year increase, despite a 1 percent month-on-month decline attributed to the elevated figures from December 2024.
The decline in transaction volume is linked to heightened caution stemming from rising delinquencies, as noted in the report by Asit C Mehta Investment Intermediates Ltd.
“Despite a slight moderation in new card dispatches, card spending, and transactions per card at the industry level, leading banks like HDFC and SBI experienced an uptick in card dispatches, thereby gaining market share,” stated Akshay Tiwari, AVP-Equity Research Analyst.
The total number of outstanding credit cards was recorded at 109 million, a decrease of 1.2 million cards from December 2024. The average spending per card saw a slight dip of 1 percent (month-on-month) to Rs 16,911, although it displayed a marginal 1 percent year-on-year increase.
The average expenditure per transaction was Rs 4,282, showcasing a 15 percent year-on-year decrease, highlighting shifts in consumer behavior and macroeconomic conditions.
Major banks continued to bolster their position in the credit card sector. HDFC Bank expanded its market share from 20.2 percent to 21.5 percent over the past year through aggressive customer acquisition strategies.
SBI rebounded from a decline in market share to 18.8 percent, adding 240,000 new cards in January alone. ICICI Bank also improved its share from 16.3 percent to 16.6 percent, as per the report.
A significant highlight of the month was the Reserve Bank of India (RBI) lifting its 10-month ban on Kotak Mahindra Bank’s credit card issuance in February 2025.
This decision allows Kotak to re-enter the market, potentially altering the competitive landscape in the forthcoming months. Currently, Kotak’s market share stands at 4.6 percent, reflecting the consequences of the previous restriction.
In spite of short-term fluctuations in transaction volume and spending, the credit card sector continues to demonstrate strong long-term growth.
