Festival demand, GST 2.0 lifted credit card spend in Apr-Dec FY26

Dec spends rebound to top Rs 2 trillion; 2025 added 7.72 million cards

Growth in seasonal consumption and goods and services tax (GST) rationalisation led to a 13.57 per cent year-on-year (Y-o-Y) increase in credit card spending during the April-December period of FY26, according to the latest data released by the Reserve Bank of India.

 

Spending in December rebounded from November, rising 9.04 per cent Y-o-Y to ₹2.05 trillion from ₹1.89 trillion in the same month in 2024, and ₹1.89 trillion in November 2025. December marked the fourth instance in 2025 when total monthly credit card spending crossed the ₹2 trillion mark.

 

The number of outstanding credit cards in the system increased by 7.14 per cent Y-o-Y to 115.78 million in December 2025, compared with 108.06 million at the end of December 2024 and 114.87 million in November 2025.

 

 

“The credit card segment performed better this year compared to the same period last year due to GST relaxation, leading to growth in spending after October as well as festival spending,” said Saurabh Bhalerao, associate director, BFSI CareEdge Ratings.

 

“Last year, banks went through a clean-up phase as lenders recalibrated card issuances. Currently, banks are focusing on high-value, low-default customers,” he added.

 

Credit card spending in the October-December quarter of FY26 rose 8.76 per cent Y-o-Y to ₹6.08 trillion, compared with ₹5.59 trillion in the same period last year. Spending during the January-December period increased 13.96 per cent Y-o-Y to ₹23.18 trillion.

 

During the April-December period of FY26, point-of-sale (PoS) transactions grew 12.01 per cent Y-o-Y to ₹6.63 trillion, while e-commerce transactions rose 14.38 per cent to ₹11.03 trillion. In December alone, PoS transactions increased 7.43 per cent Y-o-Y to ₹78,476.48 crore, while e-commerce transactions climbed 9.8 per cent to ₹1.26 trillion.

 

Among major issuers, credit card spending at HDFC Bank, the country’s largest card issuer, rose to ₹57,235.50 crore in December from ₹53,165.32 crore a year earlier. SBI Cards recorded a sharp 41.4 per cent Y-o-Y rise in spending to ₹39,892.85 crore. ICICI Bank’s card transactions grew 5.3 per cent Y-o-Y to ₹36,871.46 crore, while Axis Bank posted a 7.13 per cent increase to ₹23,181.72 crore.

 

“Looking ahead, we expect spending momentum to remain steady, supported by residual festive demand and stable consumption trends,” analysts at IDBI Capital.

 

“While Y-o-Y growth may remain moderate, improving volumes and sustained card additions suggest that underlying demand remains intact. With asset quality stabilising, banks are likely to focus on calibrated growth, fee income expansion and higher card activation rather than aggressive acquisition,” the report added.

 

HDFC Bank continues to lead in credit card issuances, with 25.79 million cards in circulation as of December 2025. Among other major players, SBI Card had 21.81 million cards, ICICI Bank had 18.65 million, and Axis Bank had 15.65 million cards at the end of December.