How India’s credit card spending rose 14% in August

CareEdge expects spending to pick up from September.

India’s credit card spending rose 14% year-on-year in August 2025 to $21.1b (₹1.92 lakh crore), driven by higher incomes, wider card use, and strong digital payments growth, according to CareEdge Ratings.

Private sector banks led the growth, holding about 75% of total spending, though their share dipped slightly from last year. Public sector banks’ share increased to around 20%. Average spending per card was $191.8 (₹17,432), up 6.7% from August 2024.

The total number of outstanding credit cards rose 6.5% year-on-year to 1.12 crore. However, spending fell 1.4% from July as activity normalised after a strong month driven by sales and travel.

Outstanding credit card balances stood at $31.8b (₹2.89 lakh crore), up 4.4% year-on-year.

The slower rise reflects tighter lending standards and a cautious approach to unsecured loans amid rising delinquencies.

CareEdge expects spending to pick up from September with the festive season and retail promotions, but banks are likely to stay careful on credit growth to protect asset quality.

($1.00 = ₹87.92)