Credit card spends rise 18% to ₹1.84 trillion in April, shows RBI data

Credit card spends surged 18 per cent YoY in April but fell 8.7 per cent from March, as issuers remained cautious on new cards due to stress in unsecured portfolios

Credit card spends grew 18 per cent year-on-year (Y-o-Y) to ₹1.84 trillion in April, but spending was down 8.7 per cent month-on-month (M-o-M) on a high base effect, latest data released by the Reserve Bank of India (RBI) showed. In March, credit card spends had surged to a four-month high of ₹2.01 trillion.

 

While spends by HDFC Bank, the largest credit card issuer in the country, rose 26.47 per cent Y-o-Y to ₹51,724 crore, SBI Cards clocked 19.6 per cent Y-o-Y growth at ₹29,415 crore. ICICI Bank’s spends rose 19.30 per cent Y-o-Y to ₹35,079 crore, while Axis Bank recorded a 14.68 per cent Y-o-Y increase to ₹21,201 crore. 

 

Analysts expect credit card spends to remain stable in FY26, supported by growth in consumption. However, they expect net card additions to remain range-bound, as lenders are focused on credit quality and cross-selling to existing customers rather than pursuing aggressive acquisition strategies. 

 

According to RBI data, credit card issuances increased by 7.67 per cent Y-o-Y in April to 110.4 million and were up 0.5 per cent M-o-M. Net card additions in the month stood at 551,315. In March, the industry had added 569,330 cards, while the additions stood at 442,172 and 817,279 cards in February and January, respectively.

 

“Net new card additions remained stable M-o-M, with most of the large players dominating the industry. However, new card issuances still remained lower than the previous year, leading to the industry’s net card additions declining by nearly 25 per cent Y-o-Y,” said analysts at IDBI Capital.

 

In April, HDFC Bank added 160,504 cards. Similarly, SBI Cards added 159,044 cards, ICICI Bank added 91,412 cards, and Axis Bank added 55,656 cards during the month.

 

Due to stress in the unsecured retail portfolio, most major issuers have calibrated their credit card issuances and tightened underwriting standards. This has resulted in a dip in net credit card issuances over recent months.