India’s credit card spending remained above ₹2 trillion for the third consecutive month, reaching ₹2.08 trillion in July 2026. With 122.86 million cards now in circulation, consumer activity remains high, though experts are increasingly watching for signs of rising debt stress among borrowers.
Indian credit card spending has maintained a steady pace, crossing the ₹2 trillion mark for the third month in a row. According to the latest Reserve Bank of India data, total credit card expenditure reached ₹2.08 trillion in July 2026. This trend highlights a consistent rise in consumer credit usage, with the average monthly spend for the first seven months of 2026 climbing to ₹2 trillion, compared to ₹1.93 trillion during the same period in 2025.Growth in Card Base and Bank Shifts
The number of active credit cards in circulation has also grown, reaching 122.86 million by July. This is a significant increase from 111.62 million in July 2025. Market dynamics are shifting as well. While private sector banks continue to hold a large market share, public sector banks are actively expanding their customer base. In contrast, foreign banks have reduced their total outstanding cards to 4.24 million, a contraction of 0.12 million in July. Despite this reduction, foreign banks often focus on premium customers, which keeps their spending intensity per card relatively high.Performance of Major Issuers
Individual bank performance varied during the month. HDFC Bank, the largest issuer, saw its spending increase by 11.93% year-on-year to ₹60,217.54 crore. It also led in new card additions, issuing over 230,000 cards in July. SBI Card, a major player in the public sector space, reported a strong 21.6% year-on-year growth in spending, reaching ₹39,591.76 crore. Conversely, ICICI Bank recorded a 5.9% decrease in spending to ₹34,025.27 crore, while Axis Bank saw a smaller rise of 4.6% to reach ₹23,824.7 crore.Emerging Risks in Unsecured Credit
While the spending numbers indicate strong consumer activity, the broader unsecured credit segment faces increasing scrutiny. Analysts and rating agencies have flagged rising delinquency rates, which refer to borrowers missing their payment deadlines. With total outstanding credit card debt reaching approximately ₹3.1 trillion as of March 2026, there are growing concerns regarding consumer over-leverage. Many consumers are using multiple credit products simultaneously, making it difficult for lenders to assess the total debt burden on an individual. As the festive season approaches, which traditionally drives higher spending, the ability of banks to maintain asset quality while chasing volume growth will be a key factor to monitor.
