India’s credit card spend slumps 9% MoM to 7-month low

Whilst spending grew 12% YoY, the pace of growth has slowed compared to previous months.

Credit card spending in India fell to ₹1,672 billion in February 2025, marking a 9% MoM decline and the lowest monthly total in seven months, according to the latest data from Asit C. Mehta Investment Interrmediates Ltd (ACMIIL).

Whilst spending grew 12% YoY, the pace of growth has slowed compared to previous months, indicating a potential softening in consumer sentiment.

The number of credit card transactions mirrored the trend, falling 8% MoM to 396 million—a 27% YoY increase, but the slowest annual growth in 13 months.

The average spend per transaction also dipped slightly from ₹4,282 in January to ₹4,219 in February, pointing to more cautious spending behaviour.

In terms of card issuance, growth continued to moderate. The number of outstanding credit cards inched up 0.4% MoM to 109 million, whilst YoY growth slowed to 9%—its lowest since June 2021.

Despite the overall slowdown, large issuers continued to gain ground. HDFC Bank and SBI each added 10 basis points (bps) in market share, reaching 21.6% and 18.9%, respectively.

ICICI Bank held steady at 16.6%, whilst Axis Bank slipped to 13.5%. Amongst mid-sized players, IDFC First Bank showed the strongest annual growth, increasing its share by 80 bps to reach 3.2%.

The market is also watching Kotak Mahindra Bank, which recently had its credit card embargo lifted by the RBI. Although it saw a 10 bps dip in February, bringing its share to 4.5%, a rebound is anticipated in the coming months.