Foreign banks have witnessed a significant contraction in their credit card market presence, with their share of total credit card spending declining to 4.6% in January 2026 from 5.2% a year ago, representing a 63 basis point year-on-year drop. According to CareEdge calculations based on Reserve Bank of India data, this decline was gradual throughout 2025, falling from 5.0% in March 2025 to 4.7% in November 2025 before easing further to 4.6% in December 2025, where it remained unchanged in January 2026. As reported by The Economic Times, this erosion in card numbers also means a shrink in the share of spending, highlighting the structural shift in India's credit card market.
Several major foreign lenders experienced significant declines in their active card base during 2025. American Express saw its active cards decline to 1.334 million in January 2026 from 1.453 million a year earlier, representing a drop of 118,000 cards. Standard Chartered Bank reported an even sharper contraction, with its card base falling to 669,000 from 904,000, a decline of 234,000 cards year-on-year. DBS Bank India also saw a steep reduction, with active cards dropping to 325,000 from 494,000, down 169,000 cards during the period. According to Saurabh Bhalerao, associate director at CARE Ratings, foreign banks witnessed a contraction in outstanding cards, reflecting their relatively cautious expansion strategy and continued focus on premium customer segments.
Only a few foreign lenders managed to expand their portfolio during this period. HSBC increased its active cards to 960,000 in January 2026 from 843,000 a year ago, adding 117,000 cards. SBM Bank India grew its card base to 804,000 from 711,000, an increase of 92,629 cards. However, as reported by The Economic Times, the overall trend shows foreign banks recording around 6% year-on-year contraction in active credit cards, alongside a decline of over 63 basis points in their share of total credit card spending, pushing their market share to below 5% by January 2026.
The credit card market has become increasingly concentrated, with the top five card issuers now accounting for more than 80% of overall credit card spending. According to Prakash Agarwal, partner at Gefion Capital, this trend highlights the structural shift in India's credit card market, where large domestic issuers have strengthened their dominance. The concentration underscores the growing challenge for foreign lenders that largely cater to niche, premium customer segments rather than pursuing mass-market expansion. As reported by The Economic Times, the overall credit card market continued to grow rapidly in 2025, driven largely by private sector banks, while foreign banks' cautious approach has resulted in their declining market presence.