SBI Card emerged as the top issuer in May 2026, adding 181,851 new cards to its portfolio. The credit card industry saw nearly one million new additions, bringing the total base to 120.45 million cards. Total credit card spending across the sector reached ₹2.02 trillion, reflecting steady but cautious growth in consumer transactions.
What Happened
In May 2026, the credit card industry maintained steady growth, adding nearly one million new cards. According to the latest data from the Reserve Bank of India (RBI), the total count of active credit cards in the country climbed to 120.45 million. SBI Card led the sector in new acquisitions, adding 181,851 cards during the month. This brought the company's total card base to approximately 22.42 million. This data provides a clear snapshot of current consumer credit demand and how major banks are competing for market share.
The Market Share Battle
The credit card market in India remains highly competitive, with large lenders vying for new customers. ICICI Bank followed closely behind the leader, adding 168,344 cards to reach a total of 19.4 million. HDFC Bank, the country's largest card issuer, increased its base by 142,297 cards, bringing its total to 26.58 million. Axis Bank also expanded, adding 52,328 cards to hit a total of 16.14 million.
Mid-sized lenders are also showing aggressive growth strategies. IDFC First Bank and Federal Bank reported significant traction, adding 87,227 and 106,861 cards, respectively. For investors, this data highlights which banks are successfully capturing new customers versus those maintaining their established market positions.
Consumer Spending Trends
Total credit card spending in the country reached ₹2.02 trillion in May 2026. This marks a month-on-month increase of 2.54% and a year-on-year rise of 2.56%. While this indicates a recovery from April’s lower figures, spending has not yet returned to the peak levels seen in March 2026, which stood at ₹2.19 trillion. E-commerce platforms continue to dominate card usage, accounting for ₹1.26 trillion of the total spending, while point-of-sale transactions totaled ₹76,095 crore.
What Investors Should Track
For investors, the credit card business is a major driver of fee-based income for banks. However, the sector faces specific business realities. Firstly, the regulator has previously signaled concerns regarding the rapid growth of unsecured lending, which includes credit cards. Any future changes in risk weight or capital requirements by the RBI could impact the profitability of these portfolios.
Secondly, while growth in card count is positive, the quality of these assets is critical. Investors may want to watch for any rise in bad loans or delinquencies in bank results, as aggressive card issuance can sometimes mask credit risks. Lastly, as spending growth remains in the single digits, the ability of these banks to maintain profit margins amid rising competition for customers will be an important factor to monitor in coming quarters.