NEW DELHI
India’s credit card spending surged 23% year-on-year in September to reach a record Rs 2.17 lakh crore, the highest level since 2020, according to a CareEdge Ratings report released on Friday.
The increase was largely driven by festive offers from banks, rising consumer demand, and the impact of GST rate reductions that encouraged higher discretionary spending. While impressive, this growth was slightly lower than the 24% expansion recorded during the same period last year.
Private sector banks (PVBs) continued to dominate the market, accounting for 74.2% of total spending in September 2025, though this marked a small decline of 130 basis points from last year. Meanwhile, public sector banks (PSBs) improved their market share to 21.2%, up from 18.4% a year earlier.
The total number of active credit cards rose from 10.6 crore in September 2024 to 11.3 crore in September 2025, showing steady growth in card adoption. Average monthly spending per card at private banks stood at Rs 20,011, up 3% year-on-year. PSBs saw a stronger 30% jump, with average per-card spending at Rs 16,927.
However, the share of credit card balances in total retail loans fell slightly to 4.5%, compared to 4.9% a year ago, signaling a gradual shift toward other retail lending categories.
As of September 2025, India’s total credit card outstanding balances stood at Rs 2.82 lakh crore, up modestly from Rs 2.72 lakh crore a year earlier, reflecting controlled credit growth amid rising consumption trends.
