Summary of this article
Credit card spends hit record Rs 2.17 lakh crore.
Festive offers, GST cuts boost discretionary spending.
Private banks dominate; public banks gain ground.
Credit card spending in September 2025 reached an all-time high of Rs 2.17 lakh crore, up 23 per cent over last year and up 13 per cent over the previous month, according to CareEdge Ratings. This is the highest since 2020, driven by festive demand, bank-led offers, and GST rate cuts that spurred discretionary spending.
Private banks held the lead in credit card spending with a 74.2 per cent share in September 2025, though their lead narrowed marginally. Public sector banks increased their share to 21.2 per cent from 18.4 per cent a year ago, helped by greater reach in smaller cities and more aggressive distribution strategies.
This market in the public sector is concentrated among a few large players, with the smaller state-run banks accounting for less than one per cent of the total spending.
Spending Per User and Card Numbers Increase
Outstanding credit cards increased, from 10.6 crore in September 2024 to 11.3 crore a year later, up by 7 per cent. Growth has been led by private banks, thanks to co-branded deals and digital onboarding, though at a slower pace than the 14 per cent expansion last year, due to more stringent screening of new customers. Thus, the average spend per card stood at Rs 19,144 in September 2025, up by 12 per cent month-on-month and 15 per cent year-on-year.
Those with private banks spent an average of Rs 20,011, compared to Rs 16,927 spent by cardholders using public banks, marking a 30 per cent increase.
Online Transactions and Festive Discounts
Record spending was mainly driven by bank and retailer-led festive offers, cashback rewards, and e-commerce discounts. The increased use of credit cards for higher-value purchases, including consumer electronics and travel, contributed to the growth.
Outstanding credit card balances were at Rs 2.82 lakh crore in September 2025, down from Rs 2.89 lakh crore in August, showing a mild sequential decline. Year-on-year, balances rose 3.7 per cent. The share of credit card outstanding balances in total retail loans eased to 4.5 per cent from 4.9 per cent a year ago.
