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Year-End Spending Peaks in March
Credit card spending hit ₹2.19 trillion in March, the highest level in three months, boosted by year-end transactions. This surge brought total spending for the financial year 2025-26 (FY26) to ₹23.62 trillion, up 11.98% from ₹21.09 trillion the previous fiscal year. The March figure itself was a significant 23.81% increase from February's ₹1.77 trillion.
E-commerce and PoS Transactions Rise Sharply
Both Point of Sale (PoS) and e-commerce channels saw strong growth. PoS transactions increased 16.36% to ₹78,470 crore in March from ₹67,435 crore in February. E-commerce payments grew even faster, rising 28.38% to ₹1.41 trillion, up from ₹1.10 trillion the month before.
Major Banks Report Increased Card Spending
Major banks reported significant increases in credit card spending from February to March. HDFC Bank's spending grew 29.62% to ₹65,337.7 crore. SBI Cards saw a 24.43% rise to ₹42,441.83 crore, ICICI Bank's spending increased 19.6% to ₹36,521.88 crore, and Axis Bank reported a 26.35% jump to ₹23,909.68 crore.
Expert: Banks Tighten Benefits Amid Risk Caution
Saurabh Bhalerao, associate director at CareEdge Ratings, explained that March spending is usually high because it's the end of the financial year. He noted that public sector banks gained market share in credit card spending during FY26. Bhalerao added that private banks are now taking a more cautious approach, reducing credit card perks and focusing on selling other products to existing customers, like home loan clients. HDFC Bank confirmed about 23% of its home loan customers use its credit cards.
New Card Growth Slows as Banks Turn Cautious
Despite higher spending, the growth in new credit cards slowed down. The total number of credit cards in circulation rose by just 0.79% month-on-month to 118.63 million. The year-on-year increase from March 2025 was a more modest 7.96%. This is significantly lower than the 19% year-on-year growth seen in March 2024, and growth remained subdued throughout FY26. Banks appear to be exercising caution due to rising delinquencies, which is likely driving this slowdown in new card issuances. By the end of March 2026, HDFC Bank's card base grew 10.37% year-on-year to 26.31 million, ICICI Bank grew 4.62% to 19.05 million, SBI Cards grew 6.12% to nearly 22.10 million, and Axis Bank increased 7.56% to 16.03 million.