Indian credit card spending remained above the ₹2 trillion mark in June, supported by strong growth from HDFC Bank and SBI Card. Despite this, some private lenders saw a decline as banks turn cautious on unsecured loans.
Detailed Coverage
Indian credit card spending continued its upward trajectory in June, crossing the ₹2 trillion mark for the second consecutive month. Official Reserve Bank of India data shows total spending hit ₹2.01 trillion, reflecting a 9.8% increase compared to the same period last year. While this figure is a marginal decrease from the ₹2.02 trillion recorded in May, the sustained volume highlights ongoing consumer engagement in the credit space.
Divergent Performance Among Major Lenders
Market leaders HDFC Bank and SBI Card were the primary drivers of this growth. HDFC Bank recorded a 16.2% year-on-year rise in spending, reaching ₹59,432 crore. SBI Card followed with a strong 34.4% jump, with spending totaling ₹41,077 crore. These gains reflect the aggressive expansion and credit card usage within their respective customer bases.
In contrast, other major private players saw a more muted performance. ICICI Bank reported a 5.2% year-on-year decline, with spending dropping to ₹31,410.9 crore, while Axis Bank saw a modest growth of 1.4%, reaching ₹22,174.8 crore.
Strategic Shifts and Market Risks
Industry experts at CareEdge Ratings have observed a clear divide in how banks are approaching the credit card business. Larger private sector banks are increasingly cautious, prioritizing asset quality over rapid growth amid ongoing concerns about unsecured lending risks. This strategy often involves stricter credit underwriting, which can slow down transaction volume growth.
Conversely, public sector banks are reporting stronger momentum, largely fueled by the rising adoption of UPI-linked credit cards on the RuPay network. By integrating credit cards with UPI, these banks are tapping into a broader segment of consumers who were previously less active in traditional credit card spending. This structural shift is becoming a significant factor in how total industry spending is distributed.
Growth in Card Base
The total number of outstanding credit cards in the country rose to 121.6 million, an increase of 9.36% year-on-year. HDFC Bank added over 163,000 new cards, while SBI Card added approximately 162,000 cards, maintaining their lead in market expansion. ICICI Bank also expanded its base by over 151,000 cards.
Investors may monitor whether the trend of cautious lending among private banks continues in the coming quarters and if the growth in UPI-linked credit cards can offset any potential slowdown in traditional high-value credit card spending. Future updates on monthly spending and asset quality metrics from these major lenders will be key to understanding the sector's health.