Credit card spending in India witnessed a 6% year-on-year growth in February 2026, as per a report. However, on a month-on-month basis, the spending eased to Rs 1,772 billion, marking an 11% moderation. The data suggests a slowdown in consumption momentum, mainly driven by the top 4 banks, according to a report by Asit C. Mehta Investment Intermediates Limited.
Card issuance remained strong with 1.05 million new cards issued, showing a 7.7% year-on-year increase and reaching a 23-month high. This indicates a continued focus on customer acquisition in the credit card sector. Total cards outstanding reached approximately 118 million, indicating a steady expansion in the credit card base across the industry.
Transaction volumes experienced an 8.5% monthly drop to 491 million, while maintaining a robust 23.9% year-on-year growth, suggesting healthy usage despite lower spending values. The slowdown in spending and volumes by the top 4 banks, which represent about 76% of industry spends, underscores their significant impact on overall trends.
February is typically a weak month for card usage, but the sharper decline this year hints at underlying softness in near-term consumption trends, as highlighted by the brokerage. The divergence between strong card issuance and weak spending indicates that banks are focusing on growth and customer acquisition over immediate usage, potentially supporting future spending recovery.
Average spends per card decreased to Rs 15,056, down 11.7% month-on-month and 1.6% year-on-year, reflecting weaker consumption and dilution due to rapid card additions. Among major banks, SBI led with a strong year-on-year spend growth of 30.3%, while the other three banks saw a moderation in growth compared to previous years. Market concentration remains high, with the top 10 banks holding about 93% of the total spending share, indicating a highly consolidated industry.
