New Delhi, Nov 9: Credit card spending rose sharply by 23 per cent year-on-year (YoY) to Rs 2.17 lakh crore in September, driven by festive season offers, GST rate cuts, and a rise in card issuances.

On a month-on-month (MoM) basis, spending grew 13 per cent, underscoring robust consumer sentiment, though the expansion was slightly lower than the 24 per cent growth recorded a year earlier. The total number of outstanding credit cards increased to 11.3 crore in September 2025, up 7.0 per cent YoY and 1.0 per cent MoM, from 10.6 crore in the same period last year.

The rise reflects continued adoption and usage, primarily driven by private sector banks (PVBs) through strategic acquisitions, cobranded partnerships, and enhanced digital offerings.

Private banks maintained their dominance in the credit card spending market with a 74.2 percent share in September 2025, although this was a 130-basis point decrease y-o-y. Meanwhile, public sector banks increased their share to 21.2 percent from 18.4 percent. The public sector bank market remains concentrated among a few large players. The total number of outstanding credit cards grew from 10.6 crore in September 2024 to 11.3 crore in September 2025, reflecting a steady increase in card penetration.

Private banks’ average spending per card in September 2025 was Rs 20,011, a 3 percent rise y-oy. Conversely, public sector banks experienced a more significant increase of 30 percent, with per-card spending rising to Rs 16,927.