Credit card spending in India reached Rs 1,990 billion in January 2026, marking an 8.1% increase from the previous year. However, data from Asit C. Mehta Investment Intermediates Limited revealed a 2.7% decline compared to the previous month. The decrease in spending was primarily attributed to reduced expenditures by the top four banks, with State Bank of India experiencing the largest drop of 4.7%.
Total transactions in January amounted to 537 million, showing a 24.9% rise from the previous year but remaining relatively steady compared to December. Despite the overall growth in transaction volumes, there was a noticeable slowdown in momentum compared to historical trends. Both online and point-of-sale transactions saw declines, with online spending falling by 2.5% and point-of-sale transactions dropping by 3.17% compared to December.
HDFC Bank managed to increase its market share to 28.4% in January, despite a decrease in overall spending. On the other hand, SBI and ICICI Bank lost market share due to sharper declines in spending. Among mid-sized banks, Federal Bank demonstrated strong performance by expanding its credit card base significantly, reporting an 83% year-on-year growth in cards outstanding.
