How Did India's Credit Card Spending Surge 23% to Rs 2.17 Lakh Crore in September?
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Synopsis
Credit card spending in India has surged to unprecedented levels, hitting Rs 2.17 lakh crore in September. This growth, driven by festive season demand and promotional offers, marks a significant milestone for the country's economy. Dive into the details of how this trend is reshaping consumer finance in India.
Key Takeaways
- India's credit card spending rose by 23% YoY to Rs 2.17 lakh crore in September.
- This is the highest spending level since 2020.
- Private sector banks hold a 74.2% market share, while public sector banks increased to 21.2%.
- Outstanding credit cards reached 11.3 crore.
- Average spending per card for PVBs was Rs 20,011 and for PSBs was Rs 16,927.
New Delhi, Nov 7 (NationPress) Credit card expenditures in India experienced a remarkable increase of 23% year-on-year (YoY), reaching Rs 2.17 lakh crore in September. This marks a record high, the first since 2020, driven primarily by bank-led festive promotions, a surge in consumer demand from festive season spending, and a reduction in GST, according to a report released on Friday.
The growth in spending was also supported by an uptick in credit card issuances during the month. However, this growth rate was slightly less than the 24% increase registered in the same time frame last year.
Private sector banks (PVBs) continued to dominate the credit card market, holding a 74.2% share in September 2025, although this reflects a 130-basis point decline YoY, as noted in the report by CareEdge Ratings.
In contrast, public sector banks (PSBs) raised their market share from 18.4% to 21.2%. The PSB sector remains largely concentrated among a few major players.
Furthermore, the total count of outstanding credit cards grew from 10.6 crore in September 2024 to 11.3 crore in September 2025, indicating a steady rise in card penetration.
During the month, average spending per card for PVBs reached Rs 20,011, reflecting a 3.0% YoY increase. On the other hand, PSBs saw a more substantial surge of 30%, with per-card spending climbing to Rs 16,927.
Meanwhile, the proportion of credit card outstanding balances in total retail loans fell to 4.5% in September 2025, down from 4.9% a year prior, suggesting a relative deceleration in credit card outstanding balances, even as other retail segments expanded.
The total outstanding credit card balances amounted to Rs 2.82 lakh crore as of September 2025, a decrease from Rs 2.89 lakh crore in August 2025 and Rs 2.72 lakh crore in September 2024, reflecting a moderate 3.7% YoY growth.
The report highlights that the share of credit card outstanding balances in total retail loans has seen a slight decline of 40 basis points to 4.5% in September 2025 from 4.9% the previous year.
Point of View
I observe that the surge in credit card spending reflects not just individual financial behavior but a broader economic revival in India. The festive season has spurred consumer confidence, and the data indicates a significant shift towards increased credit use. This trend, while promising, should be monitored for potential implications on debt levels and financial health.
NationPress
07/11/2025
Frequently Asked Questions
What contributed to the rise in credit card spending in India?
The increase in credit card spending in India can be attributed to several factors, including bank-led festive offers, rising consumer demand during the festive season, and reductions in GST.
How did private and public sector banks perform in the credit card market?
Private sector banks maintained a 74.2% market share in credit card spending, while public sector banks increased their share to 21.2%, indicating a competitive landscape.
What was the average spending per card for private and public sector banks?
Private sector banks reported an average spending of Rs 20,011 per card, while public sector banks saw a significant increase to Rs 16,927.
What is the current status of outstanding credit card balances in India?
As of September 2025, total outstanding credit card balances stood at Rs 2.82 lakh crore, reflecting a 3.7% YoY growth.
How does credit card outstanding balances relate to total retail loans?
The share of credit card outstanding balances in total retail loans decreased to 4.5% in September 2025 from 4.9% a year earlier, indicating a slowdown in credit card debt relative to other retail segments.
