February 2026 Sees 6% Growth in India's Credit Card Spending
Synopsis
In February 2026, India's credit card spending increased by 6% YoY, with significant growth in card issuance, yet a notable month-on-month decline raises concerns about future consumption trends. The report highlights the influence of major banks on spending patterns.
Key Takeaways
6% YoY growth in credit card spending for February 2026 Strong card issuance of 1.05 million new cards Total outstanding cards reached 118 million Transaction volume dropped 8.5% MoM SBI led with a 30.3% YoY growth in spending
New Delhi, April 6 (NationPress) Credit card expenditures in India saw an increase of 6% year-on-year (YoY) in February 2026, as reported on Monday.
However, when compared month-on-month, it declined to Rs 1,772 billion, marking an 11% decrease.
The report from Asit C. Mehta Investment Intermediates Limited pointed to a slowdown in consumption trends, primarily influenced by the country's top four banks.
The issuance of new cards remained strong, with 1.05 million cards issued, reflecting a 7.7% YoY increase and reaching a 23-month high, underscoring a sustained effort in customer acquisition.
Outstanding credit cards totaled approximately 118 million, indicating consistent growth in the credit card sector, as mentioned in the report.
Transaction volumes fell by 8.5% month-on-month to 491 million, yet exhibited a robust 23.9% YoY growth, indicating that card usage remains healthy despite lower spending figures.
Notably, the top four banks, which collectively represent around 76% of the industry's spending, have an outsized influence on overall spending trends.
February typically experiences weaker card usage, but the pronounced decline suggests a potential softness in near-term consumption habits, as noted by the brokerage.
The disparity between strong card issuance and declining spending indicates that banks may be focusing on growth and acquiring new customers rather than immediate usage, which could foster future spending recovery.
Average spending per card decreased to Rs 15,056, down 11.7% MoM and 1.6% YoY, reflecting reduced consumption and dilution due to rapid card issuance.
Among leading banks, SBI showcased a strong YoY spending increase of 30.3%, whereas the other three banks experienced a slowdown in growth relative to the previous two years.
The market remains highly concentrated, with the top ten banks commanding approximately 93% of total spending, indicating a highly consolidated industry.
aar/pk
Point of View
It's crucial to highlight the dual narrative emerging from the latest credit card spending report. While growth in card issuance indicates banks are actively pursuing new customers, the slowdown in spending suggests a potential shift in consumer behavior that warrants close attention.
NationPress
20 Jun 2026
Frequently Asked Questions
What was the percentage growth in credit card spending in February 2026?
Credit card spending in India grew by 6% year-on-year in February 2026.
How much did transaction volumes decrease month-on-month?
Transaction volumes dropped by 8.5% month-on-month to 491 million.
What was the total number of outstanding credit cards in India?
There are approximately 118 million outstanding credit cards in India.
Which bank showed the highest year-on-year spending growth?
SBI led with a year-on-year spending growth of 30.3%.
What was the average spending per card in February 2026?
The average spending per card was Rs 15,056, reflecting a decline.
