Credit Card Surge: 120M+ Active, Spending Slows

As of May, the number of active credit cards in India surpassed 120 million, marking a significant milestone. This figure represents an 8.3% year-on-year increase from May 2025. During May, net additions to active credit cards surged by 34% compared to the previous year, reaching 1.02 million.

Despite the robust growth in card numbers, credit card spending saw a more moderate increase of 6.3% year-on-year. Total spends amounted to ₹2.02 lakh crore in May, slightly up from ₹1.90 lakh crore in May 2025, but remaining below the ₹2.19 lakh crore recorded in March.

Industry analysts attribute the steady, high single-digit growth to a calibrated approach by issuers towards unsecured lending, stricter underwriting, and regulatory oversight. Additionally, ongoing reward devaluations and changes in spend-linked benefits signal a focus on profitability and cost efficiency.

Spending per card saw a marginal month-on-month improvement, rising to approximately ₹16,778 in May from ₹16,495 in April. Experts foresee continued industry growth, driven by increasing digital adoption, broader merchant acceptance, and sustained retail consumption.

However, potential challenges include stress in certain unsecured retail segments and evolving asset quality trends. Banks are expected to maintain caution in card sourcing, underwriting, credit line expansion, and monitoring borrower overlaps across various loan types.

SBI Cards led in new card additions in May, adding 181,851 cards. ICICI Bank followed with 168,344 additions, and HDFC Bank reported 142,297 new cards. IDFC First Bank and Federal Bank also demonstrated strong performance in the mid-tier segment.