MUMBAI: Credit card spending rose by 11.5% on-year to Rs 1.89 trillion in November, driven by higher card penetration and e-commerce spending but declined 11.9% from October which was festival month largely due to the normalisation of post-festive demand. Additionally, the November growth is 2x the 5% observed in the same period last year.
Total outstanding credit card balances stood at Rs 2.96 trillion as of November, compared to Rs 2.89 trillion in November 2024. The share of credit card outstanding balances in total retail loans came down by 40 bps to 4.6% in November, from 5% a year earlier, attributable to the RBI's tighter norms on unsecured lending and issuance curbs, which slowed new credit extensions, according to Care Ratings.
Total credit card spending rose from Rs 13.7 trillion as of November, 2004 to Rs 15.6 trillion in November, 2025, an annual growth of 14.1%, reflecting an expansion in card-based consumption. Private sector banks which lead the credit card market retained their dominance in spending with a 73.8% share in November, despite a 160-bps decline on-year, despite public sector banks increasing their share to 20.8% from 17.8%, according to data collated by this agency.
However, the credit cards market remains concentrated among a few large players, with three large private bank issuers and five large state banks accounting for 80% share, Saurabh Bhalerao an associate director with the agency said Wednesday. The total number of outstanding credit cards grew from 10.7 crore in November 2024 to 11.5 crore in November 2025, reflecting a steady increase in card penetration and registering 7.1% on-year and 0.7% on-month growth.
Issuance was led by public sector banks growing at 7.6% aided by their ability to cross-sell cards and gain share amid more cautious risk pricing by their private counterparts who grew 7.3% as tighter underwriting norms and heightened delinquency concerns tempered incremental sourcing despite continued focus on co-branded partnerships and digital acquisition channels.
Private issuers average spending per card was Rs 17,128, a marginal 2% increase, while, state banks saw a significant 21% increase, with per-card spending rising to Rs 14,323 as newer cardholders increased utilisation. Overall, per-card spending stood at Rs 16,470 in November, marking a sharp 13% on-month decline from Rs 18,824 in October, attributed to a shift away from high-volume, low-yield segments, tighter credit underwriting, greater use of EMI conversions, and substitution of UPI for low-ticket payments.
However, spending increased 4% on-year from Rs 15,825 in November 2024. The growth in outstanding balances for credit cards in total retail loans has come down to 2.4% in November from 18.1% a year earlier, indicating a relative slowdown in credit card outstanding even as other retail segments expanded. Furthermore, outstanding balances are increasingly shifting towards mid- and high-limit credit cards. Online transactions continue to dominate credit card spends, accounting for 60% of total transactions, underscoring the structural shift toward digital spending and total online e-commerce credit card transactions grew by 12% in November. In contrast, offline transactions showed more moderate growth, with state-run banks increasing by 15.6% and private ones by 10.1%.