India’s Credit Card Base Grows 9.5% YoY in September 2026, Spending Moderates on High Base: Jefferies Report

India’s domestic credit card sector maintained steady growth in cards-in-force during September 2026, even as overall spending across the industry declined due to an elevated base from the previous year. According to a report by Jefferies, total cards-in-force (CIF) across the industry expanded to 123.8 million in September 2026, advancing from the 9 per cent growth recorded in August 2026.

Despite the expansion in card volumes, total credit card spending fell 6.2 per cent year-on-year during the month, contrasting with a growth of 5.5 per cent registered in the previous month. On a sequential basis, however, overall industry spending recorded a modest increase of 0.7 per cent month-on-month, reaching ₹2 trillion.

The Jefferies report noted that the decline in spending on a year-on-year basis largely reflected a higher base from the previous year, which had been boosted by post-GST spending and an earlier timing of the festive season. Individual issuers showed varied performance regarding circulation and spend volumes during the period.

SBI Cards saw its cards-in-force growth improve marginally to 7.7 per cent year-on-year from 7.6 per cent, maintaining an overall market share of 19 per cent. The company added 0.21 million cards during September compared to 0.19 million in August, accounting for an 18 per cent share of total industry net additions. Among other major market participants, HDFC Bank and ICICI Bank posted card growth of 8 per cent year-on-year each, Axis Bank advanced by 7 per cent, while card volumes at IndusInd Bank contracted by 6 per cent year-on-year.

Highlighting spending contraction and volume distribution, the report noted that SBI Cards' spending fell 14 per cent year-on-year in September, and its share of industry spending decreased by 33 basis points month-on-month to 17.2 per cent. Its share of online spending dropped 84 basis points month-on-month to 16 per cent, while its share of POS spending rose 52 basis points month-on-month to 18.5 per cent.

Among competing lenders, HDFC Bank registered a 167 basis points month-on-month increase in total spending share to reach 32 per cent, while ICICI Bank witnessed an 81 basis points decline to 15 per cent. Axis Bank maintained an overall stable share of around 11 per cent.

In terms of spending metrics, SBI Cards' spending per card moderated to ₹15,100 in September 2026 from ₹15,400 in August 2026, remaining below the industry average of ₹16,400. SBI Cards' online ticket size was stable month-on-month at ₹2,400, below the industry average of ₹4,100, while POS ticket size stood at ₹5,900, higher than the industry average of ₹2,700. HDFC Bank recorded an increase in spending per card to ₹23,800 from ₹22,600, whereas spends per card softened on a monthly basis across most other primary issuers.

Meanwhile, the industry receivables-to-spends ratio on a trailing three-month basis rose 10 basis points month-on-month to 12.3 per cent in August 2026. Broader retail digital transactions, excluding NEFT, registered a 16.4 per cent year-on-year increase to ₹44 trillion during the period. Within this category, credit cards accounted for 4.64 per cent of total retail digital spending, marking a sequential rise of 12 basis points despite contracting by 110 basis points compared to the corresponding period last year.

"The steady expansion in India's credit card base to 123.8 million indicates continued consumer adoption of formal credit instruments. However, the year-on-year decline in spending highlights how cyclical factors, such as festival timing and past high bases, impact short-term transaction volumes. Financial institutions must carefully balance card acquisition strategies with active engagement and spending per card, especially as issuer dynamics and market shares continue to shift across major banks." — Dr. Shishir Gupta, Founder & CEO, StartupLanes