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India's Credit Card Boom: 1.14M New Cards Issued in June
27 Jul
Summary
- India added 1.14 million credit cards in June 2026.
- Total credit card spending surpassed Rs 2 lakh crore for the second month.
- HDFC Bank led issuance with 163,000 new credit cards.
Credit card issuance in India reached its peak in over two years in June 2026, as banks collectively added 1.14 million new credit cards. This significant increase brings the total number of active credit cards in circulation to 121.5 million, marking the highest monthly net addition since December 2023.
This resurgence in card issuance follows a period of slowdown influenced by the Reserve Bank of India's higher risk-weight regulations on unsecured lending, implemented in November 2023. The impact of these rules was felt through FY25 and into FY26, previously curbing rapid expansion.
Spending on credit cards also demonstrated resilience, staying above the Rs 2 lakh crore mark for the second consecutive month. In June 2026, total spending amounted to Rs 2.01 lakh crore, a slight decrease from May's Rs 2.02 lakh crore but a notable 9.8% increase compared to Rs 1.83 lakh crore in June 2025.
Leading the new additions were major issuers, with HDFC Bank at the forefront, adding 163,000 net new cards, closely followed by SBI Cards with 162,000. ICICI Bank contributed 151,000 new cards, while Federal Bank reported a strong performance with 101,000 additions.
Federal Bank's CEO, KVS Manian, expressed confidence in integrating the Standard Chartered India credit card portfolio by year-end, highlighting the deliberate growth strategy for their credit card segment.
Other banks also saw significant additions: IDFC First Bank added 91,000 cards. Axis Bank's growth moderated with 48,636 new cards, and Kotak Mahindra Bank added 31,386. RBL Bank showed a positive turn, moving from a net loss of 6,116 cards in May to a gain of 29,270 in June, suggesting the completion of portfolio clean-up.
RBL Bank's Executive Director, Jaideep Iyer, noted ongoing credit card reversals and experimental bundled product propositions. The bank plans aggressive outreach through branches and salary account customers.
Spending patterns indicate a market concentration among top issuers. HDFC Bank dominated June's spending with approximately Rs 59,432 crore (29.5% of the total), followed by SBI Cards with around Rs 41,077 crore (20.4%).
