New Delhi, Nov 7 – Credit‑card spending in India jumped 23 % year‑on‑year to ₹2.17 lakh crore in September, hitting an all‑time high for the first time since 2020. The surge follows big festive offers from banks, a boost from the upcoming holiday season, and a recent reduction in GST that lowered the cost of many goods.
The rise also came as banks pushed more cards into customers’ hands. Card issuances climbed during the month, driving the total spend higher. The growth rate was slightly below last year’s 24 % rise, but it still shows a strong upward trend.
Private sector banks (PSBs) continue to lead the market, holding 74.2 % of total spending in September. That share slipped 1.3 percentage points from the previous year, but the segment remains dominant. Public sector banks (PSBs) gained ground, lifting their share to 21.2 % from 18.4 %. Their market still concentrates around a few major players.
The country’s total number of active credit cards rose from 10.6 crore in September 2024 to 11.3 crore in September 2025, indicating steady growth in card penetration.
Average spending per card also grew. Private sector banks saw a 3 % rise, averaging ₹20,011 per card. Public sector banks enjoyed a stronger jump of 30 %, averaging ₹16,927 per card.
Meanwhile, credit‑card balances as a share of total retail loans fell to 4.5 % in September 2025 from 4.9 % a year earlier. This suggests that while overall credit‑card activity is up, the share of credit‑card debt in the retail loan portfolio is cooling relative to other segments.
Total outstanding credit‑card balances were ₹2.82 lakh crore in September 2025, up slightly from ₹2.72 lakh crore in September 2024 but down from ₹2.89 lakh crore in August 2025. Overall, balances grew about 3.7 % compared with a year ago.
The data show that India’s credit‑card market is expanding, driven by holiday spending, lower taxes, and banks’ aggressive card push, while the balance between private and public banks continues to evolve.
Source: ianslive
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