Credit Card Spending in India Jumps 23% to ₹2.17 Lakh Crore in September
New Delhi,November 9 (ANI) – Credit card spending in India experienced a notable increase in September,rising 23% year-over-year to ₹2.17 lakh crore, according to a report by CareEdge.This surge is attributed to festive season offers, reductions in Goods and Services Tax (GST) rates, and a growing number of credit cards available to consumers.
Month-over-month growth was also strong, at 13%, although slightly lower than the 24% growth seen in September 2023.
the total number of outstanding credit cards reached 11.3 crore in September 2024, a 7.0% increase year-over-year and a 1.0% increase month-over-month, up from 10.6 crore in the same period last year. This growth is largely driven by private sector banks (PVBs) through acquisitions, co-branded partnerships, and digital services. However,the rate of expansion has slowed compared to the 14% growth observed the previous year,as banks focus on attracting higher-quality customers amidst rising delinquencies in unsecured lending.
Public Sector Banks (PSBs) saw their market share decline by 130 basis points to 74.2% from 75.5% a year earlier, while gaining traction through expanded reach in tier-2 and tier-3 cities, government programs, and improved distribution networks. PSBs’ spending market share exceeded 20%, primarily from larger banks, with smaller PSBs contributing a modest 0.5%.
Average spending per card reached ₹19,144 in September, a 12.2% month-over-month and 15% year-over-year increase, fueled by festive demand, e-commerce growth, and enhanced rewards programs. PVB customers averaged ₹20,011 per card, a 3% year-over-year increase, while PSB customers saw a more substantial 30% jump to ₹16,927, reflecting improved digital engagement and competitive rewards.
Outstanding credit card balances totaled ₹2.82 lakh crore in September,slightly down from ₹2.89 lakh crore in August, but up 3.7% year-over-year from ₹2.72 lakh crore. Credit card balances now represent 4.5% of total retail loans, a decrease of 40 basis points, indicating healthy repayment trends alongside continued credit demand.