Credit card spending in India rises 14% in Jan

Mumbai

Credit card spending in India surged to ₹1.84 lakh crore in January 2025, marking a 14% year-on-year growth, according to a report by Asit C Mehta Investment Intermediates Ltd. However, transaction volume declined slightly by 1% compared to December 2024, with total transactions reaching 430 million, reflecting a 31% annual increase.

The slowdown in transaction growth is attributed to rising delinquencies, leading to cautious spending. Despite this, major banks like HDFC and SBI expanded their market share through aggressive card issuance. HDFC Bank's share grew from 20.2% to 21.5%, while SBI added 2.4 lakh new cards, reclaiming an 18.8% market share. ICICI Bank also saw a slight rise in market presence, from 16.3% to 16.6%.

The number of active credit cards stood at 109 million, dropping by 1.2 million from December. Average spending per card declined marginally to ₹16,911, while spending per transaction fell 15% year-on-year to ₹4,282, indicating shifting consumer behavior.

A major development was the Reserve Bank of India lifting its 10-month ban on Kotak Mahindra Bank’s credit card issuance, allowing it to re-enter the market. Despite short-term fluctuations, the credit card industry remains on a strong growth trajectory.