India credit card spends hit ₹2,023 billion in May, 1 million new cards added
Synopsis
India's credit card market is expanding on both ends — spending climbed to ₹2,023 billion in May and card issuance hit a near 27-month high of 1 million new cards. But the fine print matters: per-transaction spend is falling and the sequential recovery partly reflects a bounce from April's sharp dip, not a clean structural upturn.
Key Takeaways
Credit card spending in India rose to ₹2,023 billion in May 2025 , up 6.6 per cent year-on-year .
The industry added 1 million new cards in May — the second-highest monthly issuance in the past 27 months .
Total cards in force reached 120.5 million , with YoY growth at a 15-month high of 8.7 per cent .
SBI led per-card spend growth at 12 per cent YoY , lifted by higher corporate spending.
Average spend per transaction fell 15 per cent YoY and 3 per cent MoM , reflecting a rise in low-value transactions.
New loan credit sourcing in Q3 FY26 surged 36 per cent YoY , up from 7 per cent a year earlier.
Credit card spending in India climbed to ₹2,023 billion in May 2025, rising 6.6 per cent year-on-year and 2.6 per cent month-on-month, according to a report by Asit C. Mehta Investment Intermediates Limited released on Friday, 26 June. The sequential uptick follows a sharp 10.1 per cent month-on-month decline in April, suggesting the recovery remains tentative rather than structurally entrenched.
Card Issuance at a 27-Month High
The industry added 1 million new credit cards in May — the second-highest monthly issuance in the past 27 months. Total cards in force rose to 120.5 million, with year-on-year growth accelerating to 8.7 per cent, the highest rate recorded in the past 15 months. The surge in card additions signals that lenders are actively expanding their customer base even as per-card spending metrics show signs of moderation.
Transaction Volumes and Spend Trends
Transaction volumes reached 587 million in May, up 5.7 per cent sequentially and 25.8 per cent on an annual basis. However, the sequential rebound is partly a mechanical recovery from April's steep decline rather than fresh organic demand, the report cautioned.
Average spend per card eased 1.8 per cent year-on-year but edged up 1.7 per cent month-on-month. SBI stood out as a clear outlier, posting per-card spend growth of 12 per cent year-on-year, driven by higher corporate card usage. Average spend per transaction continued its downward trajectory, falling 3 per cent month-on-month and 15 per cent year-on-year, a trend the report attributed to a rising share of low-value transactions.
Market Share Dynamics Among Top Banks
The top four banks — collectively holding roughly 76 per cent of industry spending market share — accounted for only 63.7 per cent of incremental spending during May, indicating that smaller players are gaining ground at the margin. Among the top four, most broadly matched industry sequential growth; HDFC Bank was the exception, growing at a more modest 4.2 per cent sequentially.
Broader Credit Growth Picks Up Pace
A separate report noted that credit sourcing of new loans in Q3 FY26 grew 36 per cent year-on-year, a sharp acceleration from the 7 per cent recorded a year earlier. The report pointed to sustained demand from both consumers and businesses, alongside rising secured lending and improving asset quality as key drivers of the upturn.
With card issuance near multi-year highs and credit sourcing accelerating, the trajectory of consumer credit in India will be closely watched in the months ahead — particularly to see whether May's spending recovery holds through the festive quarter.
Point of View
023 billion in spends and 1 million new cards — look robust, but the report's own caveat is the real story: the sequential recovery follows a 10.1 per cent April slump and is not yet structural. Falling per-transaction spend signals that growth is being driven by volume of small-ticket purchases, not rising consumer confidence on big-ticket items. The divergence between top-four banks' 76 per cent market share and their 63.7 per cent share of incremental spending suggests challengers are eating at the edges — a dynamic that could reshape the competitive landscape if it persists into the festive quarter.
NationPress
26 Jun 2026
Frequently Asked Questions
How much did credit card spending grow in India in May 2025?
Credit card spending in India reached ₹2,023 billion in May 2025, rising 6.6 per cent year-on-year and 2.6 per cent month-on-month, according to a report by Asit C. Mehta Investment Intermediates Limited. The sequential recovery followed a 10.1 per cent month-on-month decline in April.
How many new credit cards were added in India in May 2025?
The industry added 1 million new credit cards in May 2025, marking the second-highest monthly card issuance in the past 27 months. Total cards in force rose to 120.5 million, with year-on-year growth hitting a 15-month high of 8.7 per cent.
Which bank showed the strongest per-card spend growth in May?
SBI stood out with per-card spend growth of 12 per cent year-on-year in May 2025, well above the industry average. The report attributed this to higher corporate card spending on SBI-issued cards.
Why is average spend per transaction declining?
Average spend per transaction fell 15 per cent year-on-year and 3 per cent month-on-month in May, continuing a downward trend driven by a rising share of low-value transactions. This suggests credit cards are increasingly being used for everyday small-ticket purchases rather than large discretionary spends.
How did broader credit growth perform in Q3 FY26?
Credit sourcing of new loans in Q3 FY26 grew 36 per cent year-on-year, sharply accelerating from 7 per cent recorded a year earlier. The growth was driven by sustained consumer and business demand, rising secured lending, and improving asset quality.
