Credit card spending reached ₹2.01 trillion in June, marking the second consecutive month above the ₹2 trillion threshold according to Reserve Bank of India data. This represents a 9.8% year-on-year increase from the previous month's spending of ₹2.02 trillion in May. The sustained high spending levels demonstrate continued robust consumer demand for credit card services across the Indian market.
HDFC Bank, the country's largest credit card issuer, led the growth with a 16.2% year-on-year increase in spending to ₹59,432 crore. In contrast, ICICI Bank experienced a 5.2% decline in card spends to ₹31,410.9 crore, while Axis Bank recorded modest growth of 1.4% to ₹22,174.8 crore. SBI Card emerged as the standout performer with a remarkable 34.4% year-on-year jump to ₹41,077 crore, as reported by Business Standard.
According to CareEdge Ratings, the industry's 10% overall growth is primarily driven by public-sector banks, while large private-sector banks recorded approximately 6% year-on-year growth. Other private-sector banks experienced a 4% decline. Private banks remain cautious due to concerns around unsecured lending and asset quality, while public-sector banks benefit from higher adoption of UPI-linked credit, particularly through RuPay credit cards where they maintain stronger issuance franchises.
The banking sector's outstanding credit card base grew 0.95% month-on-month and 9.36% year-on-year to 121.6 million cards. HDFC Bank added 163,511 cards during June, bringing its total base to 26.75 million cards. SBI Cards added 162,664 cards to reach 22.5 million cards, while ICICI Bank added 151,352 cards to take its base to 19.52 million cards. Axis Bank added 48,636 cards, expanding its outstanding card base to 16.19 million cards.
