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India's Credit Card Boom: Spending Hits Record Rs 2.17 Lakh Cr Amid Festive Rush

India's credit card spending has hit an all-time high of Rs 2.17 lakh crore in September 2025. This represents a 23% year-on-year growth driven by festive season demand and bank-led offers. Private sector banks continue to dominate the market with nearly three-fourths share, though public sector banks are gaining ground. The total number of outstanding credit cards also increased significantly, showing growing financial inclusion across the country.

Key Points: India Credit Card Spending Hits Record Rs 2.17 Lakh Cr in September

  • Credit card spending reached Rs 2.17 lakh crore, highest since 2020
  • Private banks dominate with 74.2% market share despite slight decline
  • Public sector banks gained market share, rising to 21.2% from 18.4%
  • Outstanding credit cards grew from 10.6 crore to 11.3 crore year-on-year
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India's credit card spending rises 23 pc to Rs 2.17 lakh crore in September: Report

India's credit card spending surges 23% to record Rs 2.17 lakh crore in September 2025, driven by festive demand and bank offers, reveals CareEdge Ratings report.

"The share of credit card outstanding balances in total retail loans has decreased marginally by 40 bps to 4.5 per cent - CareEdge Ratings Report"

New Delhi, Nov 7

Credit card spending in India rose 23 per cent year-on-year (YoY) to Rs 2.17 lakh crore in September, reaching an all-time high for the first time since 2020, attributed to bank-led festive offers, increasing consumer demand driven by the festive season spending and GST reduction, a report said on Friday.

An uptick in card issuances in the month has also pushed the spending. However, this growth was marginally lower than the 24 per cent growth seen in the same period last year.

Private sector banks (PVBs) maintained their dominance in the credit card spending market with a 74.2 per cent share in September 2025, although this was a 130-basis point decrease YoY, CareEdge Ratings said in its report.

Meanwhile, public sector banks (PSBs) increased their share to 21.2 per cent from 18.4 per cent. The PSB market remains concentrated among a few large players.

According to the report, the total number of outstanding credit cards grew from 10.6 crore in September 2024 to 11.3 crore in September 2025, reflecting a steady increase in card penetration.

PVBs' average spending per card in the month was Rs 20,011, a 3.0 per cent rise YoY. Conversely, PSBs experienced a more significant increase of 30 per cent, with per-card spending rising to Rs 16,927.

Meanwhile, the share of credit card outstanding balances in total retail loans declined to 4.5 per cent in September 2025 from 4.9 per cent a year earlier, indicating a relative slowdown in credit card outstanding's even as other retail segments expanded.

The total outstanding credit card balances stood at Rs 2.82 lakh crore as of September 2025, compared to Rs 2.89 lakh crore in August 2025 and Rs 2.72 lakh crore in September 2024, indicating a moderate YoY growth of 3.7 per cent on-year.

"The share of credit card outstanding balances in total retail loans has decreased marginally by 40 bps to 4.5 per cent in September 2025 from 4.9 per cent a year earlier," the report said.

- IANS

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Reader Comments

R
Rohit P
While the growth is impressive, I'm concerned about rising household debt. People are getting too comfortable with credit cards without proper financial planning. We need more financial literacy programs.
A
Arjun K
Good to see PSBs increasing their market share! Public sector banks are more trustworthy and offer better customer service in my experience. Hope this trend continues 👍
S
Sarah B
The 30% increase in PSB per-card spending is remarkable! Shows how public banks are catching up with private ones in terms of customer engagement and offers.
V
Vikram M
Credit card penetration increasing from 10.6 to 11.3 crore shows India's growing digital economy. This is positive for our economic growth and financial inclusion.
M
Michael C
The marginal decline in credit card outstanding balances as percentage of retail loans is actually a healthy sign. Means people are managing their credit better despite increased spending.

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