India's Credit Card Market Surpasses 120 Million Active Cards Amidst Slower Spending Growth
Quick Look
- India's active credit card count exceeded 120 million in May, with net additions up 34% year-on-year to 1.02 million.
- However, total spending saw a modest 6.3% increase to ₹2.02 lakh crore, indicating a slowdown despite strong card acquisition.
AI-generated summary
Mumbai: The number of active credit cards in the country crossed 120 million in May, when net additions surged 34% year-on-year to 1.02 million, even as credit card spending grew just 6.3% on year, data from the Reserve Bank of India (RBI) showed.
Total credit card spends stood at ₹2.02 lakh crore last month against ₹1.90 lakh crore in May 2025 and ₹1.97 lakh crore in April 2026. While it suggests some normalisation in consumer spending after the typical April dip, the May spending remained significantly below ₹2.19 lakh crore in March.
Total cards in force rose 8.3% year-on-year from 111.20 million in May 2025.
"Industry growth continues to remain in the high single-digit range, with issuers maintaining a calibrated approach towards unsecured lending amid tighter underwriting standards and regulatory oversight," said Sweta Padhi, analyst at IDBI Capital. "Also, ongoing reward devaluations and spend linked benefit structures across major issuers indicate continued focus on profitability and cost rationalisation."
The spending per card improved marginally month-on-month to approximately ₹16,778 in May versus ₹16,495 in April, and experts believe increasing adoption will push growth in the industry.
"The near-term outlook for the credit card industry remains stable, supported by rising digital adoption, expanding merchant acceptance, and continued retail consumption," said Saurabh Bhalerao, associate director, BFSI research, at CareEdge Ratings. "However, stress in select unsecured retail segments, particularly lower-ticket and revolving credit portfolios, and evolving asset quality trends remain a key monitorable."
He expects banks "to maintain a cautious and calibrated approach towards card sourcing, underwriting, credit line expansion, and monitoring of borrower overlaps across personal loans, consumer durable financing, and credit cards."
SBI Cards emerged as the top card issuer in May, adding 181,851 net new cards, its strongest monthly performance in the recent series, overtaking ICICI Bank which had topped the chart in April.
ICICI Bank came second with 168,344 additions, followed by HDFC Bank at 142,297.
IDFC First Bank and Federal Bank maintained their strong mid-tier momentum, adding 87,227 and 106,861 cards, respectively.
