India's Credit Card Base Jumps 9.5%, But Spending Hits a Speed Bump
India's credit card base grew to 123.8 million in September, though spending dipped due to a high previous year base, per a Jefferies report.
India's appetite for plastic money continues to grow, but the actual spending patterns are showing some interesting shifts. According to a recent report by Jefferies, the domestic India credit card base expanded by 9.5 per cent year-on-year (YoY) in September 2026, signaling a healthy increase in card adoption across the country.
The total cards-in-force (CIF) across the industry climbed to 123.8 million during September, a slight acceleration from the 9 per cent growth seen in August 2026. However, while more people are holding cards, they aren't necessarily spending more than they did last year.
The Spending Paradox: Growth vs. Contraction
Despite the rise in the number of cards, total credit card spending actually dropped by 6.2 per cent YoY in September. This stands in stark contrast to the previous month, which had seen a growth of 5.5 per cent.
Jefferies explains that this dip isn't necessarily a sign of waning consumer confidence, but rather a result of a "high base" effect. Last year's spending was significantly boosted by post-GST activity and an earlier start to the festive season, making this year's numbers look lower by comparison.
On a month-on-month (MoM) basis, the picture is slightly more positive, with overall industry spending ticking up by 0.7 per cent to reach a massive Rs 2 trillion.
Bank-wise Breakdown: Who is Winning?
The report reveals a varied performance among the major card issuers, showing that different banks are capturing different segments of the market.
SBI Cards: Steady Growth, Lower Spend
SBI Cards maintained a 19 per cent market share, with its cards-in-force growing 7.7 per cent YoY. The bank added 0.21 million cards in September, contributing 18 per cent of the industry's total net additions. However, spending at SBI Cards plummeted 14 per cent YoY.
- Spending per card: Rs 15.1k (below the industry average of Rs 16.4k).
- Online ticket size: Rs 2.4k (below the industry average of Rs 4.1k).
- POS ticket size: Rs 5.9k (above the industry average of Rs 2.7k).
The Heavy Hitters: HDFC and ICICI
HDFC Bank and ICICI Bank both posted a healthy card growth of 8 per cent YoY. HDFC Bank, in particular, saw a significant jump in its total spending share, which rose by 167 basis points MoM to reach 32 per cent. Its spending per card also increased to Rs 23,800 from Rs 22,600.
Meanwhile, ICICI Bank saw its spending share decline by 81 basis points MoM to 15 per cent. Axis Bank remained stable with a market share of approximately 11 per cent and a card growth of 7 per cent YoY. In contrast, IndusInd Bank saw its card volumes contract by 6 per cent YoY.
The Bigger Picture: Digital Transactions
While credit cards are a major talking point, they are part of a much larger digital revolution in India. Broader retail digital transactions (excluding NEFT) surged by 16.4 per cent YoY, reaching a staggering Rs 44 trillion.
Within this massive digital ecosystem, credit cards currently account for 4.64 per cent of total retail digital spending. While this is a sequential rise of 12 basis points, it represents a contraction of 110 basis points compared to the same period last year.
Additionally, the industry's receivables-to-spends ratio on a trailing three-month basis saw a slight increase of 10 basis points MoM, reaching 12.3 per cent in August 2026.