India’s Credit Card Spending Reaches ₹1.84 Lakh Crore in January 2025, Sees 14% Year-on-Year Growth
India’s credit card spending reached ₹1.84 lakh crore in January 2025, marking a 14% YoY growth despite a 2% MoM decline. Key banks like HDFC and SBI gained market share amid evolving consumer trends.
New Delhi: India’s credit card spending in January 2025 reached Rs 1,841 billion, reflecting a 2% month-on-month (MoM) decline but demonstrating a strong 14% year-on-year (YoY) growth, according to data analyzed by Asit C. Mehta Investment Intermediates.
The decline in monthly spending was largely due to seasonal factors, as December 2024 saw increased transactions driven by festive and year-end expenses.
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Despite the temporary dip, the long-term growth trajectory of the credit card industry remains strong, indicating rising digital transactions, increased credit adoption, and changing consumer behavior.
Transaction Volume and Spending Patterns
The total number of credit card transactions in January 2025 stood at 430 million, marking a 31% YoY increase, though it fell by 1% MoM due to December’s high transaction base.
Key spending trends include:
- Outstanding credit cards: 109 million (declined by 1.2 million from December 2024).
- Average spending per card: Rs 16,911 (1% MoM decline but 1% YoY increase).
- Average spending per transaction: Rs 4,282 (1% MoM decline, 15% YoY decrease).
The drop in spending per transaction indicates evolving consumer spending habits and cautious discretionary expenditures in response to macroeconomic factors.
Market Share Trends: Leading Banks Dominate
India’s top banks continued to strengthen their foothold in the credit card segment. HDFC Bank, SBI, and ICICI Bank emerged as key players in customer acquisition and spending patterns.
Top Banks by Market Share:
- HDFC Bank: Increased market share from 20.2% to 21.5% over the past year through aggressive customer acquisition.
- SBI (State Bank of India): Recovered from previous dips, reaching 18.8% market share, issuing 240,000 new cards in January 2025.
- ICICI Bank: Increased market share from 16.3% to 16.6%.
Mid-Sized Banks Performance:
- Yes Bank: Maintained a 2.2% market share, showing stagnation since September 2024.
- IDFC First Bank: Expanded its market share from 2.4% to 3.1% in the past year, indicating an upward trajectory.
Regulatory Developments: RBI Lifts Kotak Mahindra Bank’s Credit Card Ban
A major regulatory shift occurred in February 2025, with the Reserve Bank of India (RBI) lifting the 10-month embargo on Kotak Mahindra Bank’s credit card issuance. This move allows Kotak to re-enter the market, setting the stage for intensified competition in the coming months.
Currently, Kotak Mahindra Bank holds a 4.6% market share, but the removal of restrictions is expected to boost its credit card portfolio, potentially reshaping market dynamics.
Emerging Consumer Behavior & Future Outlook
The Indian credit card industry, while experiencing short-term fluctuations, is positioned for long-term growth driven by increasing financial inclusion, digital adoption, and evolving consumer behavior.
Key trends influencing the market include:
- Cautious lending practices due to rising delinquencies.
- Shift in consumer preferences, with a decrease in average spending per transaction.
- Market expansion efforts by both leading and mid-sized banks.
Expert Analysis & Industry Insights
Mr. Akshay Tiwari, AVP – Equity Research Analyst (BFSI), Asit C Mehta Investment Intermediates Ltd., shared insights on the latest credit card trends:
“Although the credit card data saw moderation in new card issuances, spending, and transactions per card, leading banks like HDFC and SBI continued to expand their portfolios, gaining market share. Mid-sized banks, however, remain cautious, pausing aggressive credit card disbursement strategies.”
