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PSBs Outpace Private Banks in Online Credit Card Transaction Growth

Public sector banks have significantly outpaced private lenders in the growth of online credit card transactions, according to a new report. While PSBs saw a sharp 31.5% year-on-year increase in online transactions, private banks recorded a modest 2.7% growth. The SBI group was a major driver of this expansion, increasing its card base to 2.19 crore. Overall credit card spending in India reached Rs 2.05 lakh crore in January 2026, with e-commerce accounting for over 61% of all transactions.

Key Points: PSBs Outperform Private Banks in Credit Card Growth: Report

  • PSBs grew online transactions 31.5%
  • Private banks grew only 2.7%
  • E-commerce dominates 61% of transactions
  • SBI group card base expanded to 2.19 crore
2 min read

PSBs record multifold growth against private lenders in online credit card transactions: Report

PSBs see 31.5% growth in online credit card transactions, sharply outpacing private banks' 2.7%, driven by e-commerce dominance.

"Online transactions grew 7.3 per cent YoY, with PSBs registering a sharp 31.5 per cent increase - CareEdge Ratings Report"

New Delhi, March 6

Credit card spending in India rose 8.1 per cent year-on-year to Rs 2.05 lakh crore in January 2026, driven by momentum in e-commerce transactions, a report showed on Friday.

The report by CareEdge Ratings also said that public sector banks (PSBs) registered a 7.1 per cent YoY growth in outstanding cards -- a significant jump compared to private banks.

In terms of transactions, digital payments continued to dominate credit card usage, with e-commerce accounting for over 61 per cent of total transactions.

"Online transactions grew 7.3 per cent YoY, with PSBs registering a sharp 31.5 per cent increase -- significantly outpacing the 2.7 per cent growth recorded by private banks," the report said.

However, much of the growth came from the SBI group, whose card base expanded 7 per cent to 2.19 crore, the report highlighted.

In contrast, foreign banks saw a contraction of around 6 per cent in outstanding cards as they maintained a cautious expansion strategy focused on premium customers, according to the report.

However, it also flagged that overall growth showed signs of moderation after the year-end surge in discretionary purchases.

On a month-on-month (MoM) basis, spending declined 2.3 per cent.

The report also pointed out that the annual growth rate was lower than the 13.8 per cent expansion recorded in January 2025 due to a high base effect.

"The total number of outstanding credit cards grew from 10.9 crore in January 2025 to 11.7 crore in January 2026," the report said, suggesting a 7.1 per cent YoY rise and a 0.8 per cent increase compared with the previous month.

Meanwhile, total outstanding credit card balances stood at Rs 2.95 lakh crore in January 2026.

Private sector banks (PVBs) continued to lead card issuance with 7.6 per cent annual growth, supported by strong distribution networks and co-branded partnerships with e-commerce and fintech platforms. "Within this group, smaller and mid-sized private lenders accounted for a significant portion of new card additions," CareEdge Ratings stated.

Overall, credit card spending during FY26 so far has risen nearly 13 per cent YoY to Rs 19.7 lakh crore, the report highlighted.

- IANS

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Reader Comments

P
Priya S
Interesting data, but let's not get carried away. Most of the PSB growth is just SBI. Other public banks still have a long way to go in terms of customer service and seamless digital experience. Private banks are still way ahead in that department.
R
Rohit P
E-commerce accounting for 61% of transactions! No surprise there. From groceries to gadgets, everything is online now. My SBI SimplyCLICK card gives great cashback on Amazon and Flipkart. That's probably driving a lot of this PSB growth. Smart move by them.
S
Sarah B
The month-on-month decline is a bit worrying. Is the festive season spending spree finally over? Hope this doesn't signal a broader slowdown in consumer spending. The economy needs this momentum.
V
Vikram M
As someone who recently got an SBI card, I can say their online process has become much smoother. Earlier we avoided PSBs for cards due to paperwork. Now it's almost as easy as private banks. More competition is always good for us customers! 👍
K
Karthik V
Rs 2.95 lakh crore in outstanding balances... that's a huge number. While digital adoption is great, I hope people are using credit responsibly and not getting into debt traps. Financial literacy is just as important as these growth figures.

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