Credit card spending in India increased by 8.1% year-on-year to reach Rs 2.05 lakh crore in January 2026, primarily fueled by e-commerce transactions, as per a report by CareEdge Ratings. Public sector banks (PSBs) witnessed a notable 7.1% YoY growth in outstanding cards, a significant surge compared to private banks. Digital payments, particularly in e-commerce, dominated credit card usage, constituting over 61% of total transactions.
The report highlighted a 7.3% YoY growth in online transactions, with PSBs notably experiencing a sharp 31.5% increase, surpassing the 2.7% growth seen in private banks. The State Bank of India (SBI) group notably expanded its card base by 7% to 2.19 crore, driving much of the overall growth. Conversely, foreign banks saw a decline of about 6% in outstanding cards, maintaining a cautious approach focused on premium customers.
Despite the surge in discretionary purchases at year-end, the overall growth exhibited signs of moderation. Monthly spending saw a 2.3% decline on a month-on-month basis. The annual growth rate was lower than the 13.8% expansion in January 2025 due to a high base effect. The total number of outstanding credit cards increased from 10.9 crore in January 2025 to 11.7 crore in January 2026, indicating a 7.1% YoY rise and a 0.8% increase from the previous month.
Moreover, the total outstanding credit card balances in January 2026 amounted to Rs 2.95 lakh crore. Private sector banks (PVBs) continued to lead in card issuance, with a 7.6% annual growth, supported by robust distribution networks and co-branded partnerships with e-commerce and fintech platforms. Smaller and mid-sized private lenders within this group contributed significantly to new card additions. Overall, credit card spending during FY26 has surged nearly 13% YoY to Rs 19.7 lakh crore, as per the report.
