Credit card spending in India rose 11.5 per cent year-on-year in November 2025, supported by higher card penetration and sustained growth in ecommerce transactions, even as spending moderated sequentially following the festive season, according to a report by CareEdge Ratings.
In absolute terms, credit card spending declined 11.9 per cent month-on-month to Rs 1.89 lakh crore in November, reflecting a normalisation after elevated festival-led consumption in the previous months. Despite the sequential decline, growth remained strong, more than double the 5 per cent year-on-year expansion recorded in November 2024.
Private sector banks (PVBs) continued to dominate credit card spending with a 73.8 per cent market share in November 2025, although their share declined by 160 basis points over the year. Public sector banks (PSBs) increased their share to 20.8 per cent from 17.8 per cent a year earlier, aided by aggressive card issuance in mass and co-branded segments. However, the market remains highly concentrated, with three large PVBs and five large PSBs accounting for nearly 80 per cent of total spending.
The number of outstanding credit cards rose to 11.5 crore in November 2025 from 10.7 crore a year earlier, reflecting steady growth in card penetration. PSBs led issuance growth with a 7.6 per cent year-on-year increase, supported by cross-selling and wider reach in tier-2 and tier-3 cities. PVB card issuance grew 7.3 per cent, slower than last year, as tighter underwriting norms and delinquency concerns tempered incremental sourcing.
Per-card spending declined sharply on a monthly basis to Rs 16,470 in November from Rs 18,824 in October, driven by softer discretionary spending, greater use of EMIs, substitution of UPI for low-ticket transactions, and tighter credit norms. On a year-on-year basis, however, per-card spending increased 4 per cent. PVBs reported higher average spending per card at Rs 17,128, while PSBs saw a sharper 21 per cent rise to Rs 14,323, reflecting improved utilisation by newer cardholders.
Online transactions continued to account for around 60 per cent of total credit card spending. Ecommerce transactions grew 12 per cent year-on-year in November, with PSBs recording a sharp 41.8 per cent increase, significantly outpacing PVBs.
CareEdge noted that while credit card spending for the year-to-date period rose 14.1 per cent year-on-year, growth ahead is likely to remain measured. Tighter regulatory norms on unsecured lending, along with cautious issuance by banks, are expected to moderate expansion and encourage a shift towards more sustainable, risk-adjusted growth in credit card usage. |
