India Credit Card Spends Hit ₹1.89L Cr, Up 11.5% YoY

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AuthorKavya Nair|Published at:
India Credit Card Spends Hit ₹1.89L Cr, Up 11.5% YoY
Overview

Reserve Bank of India data shows India's credit card spending reached ₹1.89 lakh crore in November, an 11.5% year-on-year increase. Despite a typical post-festive sequential slowdown, underlying consumption remains strong, fueled by growing card penetration and robust e-commerce activity. Public sector banks are steadily capturing market share.

Consumer Spending Shows Resilience

Credit card spending in India maintained a robust pace in November, climbing 11.5% year-on-year to ₹1.89 lakh crore. This growth, reported by the Reserve Bank of India (RBI), offers a granular view of economic activity beyond GDP figures. While spending saw a sequential decline of 12% from October, this reflects a normal post-festive season adjustment rather than a fundamental slowdown.

The annual growth rate nearly doubled compared to November of the previous year. Key drivers include increasing credit card penetration across the population and sustained demand in the e-commerce sector. Online transactions now constitute over 60% of total credit card expenditure, underscoring a significant and ongoing shift toward digital consumption habits.

Digital Shift Accelerates

Average spending per card saw a moderation, dipping to approximately ₹16,470 in November from the October festive peak. However, this figure remains higher than the previous year. This adjustment is attributed to a move away from large festive purchases, a rise in the use of Equated Monthly Installments (EMIs) for purchases, and the increasing adoption of the Unified Payments Interface (UPI) for smaller transactions.

Tighter lending norms, influenced by rising delinquencies in unsecured loans, also play a role. Consumers are becoming more judicious with credit, especially for smaller purchases where UPI offers a more convenient alternative.

Banking Landscape Evolves

Private sector banks continue to dominate credit card spending, accounting for roughly 74% of the total. Nevertheless, their market share has experienced a decline over the past year. Public sector banks have capitalized on this, expanding their share to 20.8% through aggressive card issuance strategies, particularly targeting mass-market and co-branded segments.

The market remains highly concentrated, with a few major private and public sector banks handling nearly 80% of all credit card spending. HDFC Bank maintains its leading position in both card issuance and transaction volume, closely followed by SBI Card, signaling ongoing consolidation within India's competitive credit card industry.

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