Credit card spends dip slightly in January; issuances rise to 116.6 mn

Credit card spending eased to Rs 2 trillion in January after festive highs, though outstanding cards rose to 116.65 million as issuers recalibrated amid tighter norms and shifting customer profiles

Credit card spending in January stood at Rs 2 trillion, moderating from Rs 2.05 trillion in the previous month when there were several festivals. Spending increased more than 8 per cent year-on-year (Y-o-Y).

 

The number of outstanding credit cards increased to 116.65 million in January from 115.78 million in December, according to data released by the Reserve Bank of India (RBI). Point of sale transactions in January slipped by 3.17 per cent sequentially to Rs 7.59 trillion. Ecommerce transactions dipped by 2.47 per cent to Rs 12.30 trillion.

 

“Credit card spending growth moderated to around 8 per cent on a Y-o-Y basis in January 2026, with month-on-month (M-o-M) momentum steady and broadly in line with December. January saw a natural dip after strong festive spending,” said Sweta Padhi, an analyst at IDBI Capital.

   

“Industry-wide growth has slowed from the mid-teens since last year and has not yet revived, with November’s 11 per cent festive growth reverting to 8 per cent. So far in the year, the slowdown in cards additions is driven by tighter underwriting norms and regulatory restrictions on unsecured lending, which have reduced issuance and overall spending levels,” said Padhi.

 

Most major credit card issuers reported a moderation in spending in January. HDFC Bank, the largest issuer, saw spending decline 1.25 per cent M-o-M to Rs 56,518.29 crore, from Rs 57,235.5 crore in December. ICICI Bank reported an 11.82 per cent decline in spending at Rs 35,178.16 crore, while Axis Bank saw spends fall 2.72 per cent to Rs 22,550.86 crore.

 

Spending on cards issued by SBI Card increased 3.13 per cent to Rs 38,026.5 crore.

 

HDFC Bank had 26.10 million cards in circulation in January, maintaining its lead in issuances. SBI had 21.90 million cards, followed by ICICI Bank (18.77 million) and Axis Bank (15.73 million).

 

“Credit card additions have slowed, especially among mid-sized private banks, as they turned their focus towards quality. Earlier regulatory risk-weight hikes on unsecured lending had prompted caution,” said Saurabh Bhalerao, Associate Director, BFSI CareEdge Ratings.

 

“These restrictions have since been reversed and are no longer directly affecting growth. Larger private banks are still expanding at a normal pace, targeting higher-value customers. Public sector banks are seeing better spending growth as past additions begin yielding results,” he said.

 

In April-January of FY26, credit card spending rose to Rs 19.64 trillion, from Rs 17.4 trillion in the corresponding period of the previous year. Card additions growth remained subdued. The industry added 6.77 million cards in April-January of FY26, compared with 7.07 million additions in April–January of FY25.

 

Following regulatory restrictions in FY24, credit card issuers have recalibrated their strategies to focus more sharply on premium customers and high-ticket spending. Consequently, industry-wide card additions have remained measured, even as overall spending continues to rise Y-o-Y.