Credit card spending in January stood at 2 trillion, moderating from 2.05 trillion in the previous month when there were several festivals. Spending increased more than 8 per cent year-on-year (Y-o-Y).
The number of outstanding credit cards increased to 116.65 million in January from 115.78 million in December, according to data released by the Reserve Bank of India.
Point of sale transactions in January slipped by 3.17 per cent sequentially to Rs 7.59 trillion.
Ecommerce transactions dipped by 2.47 per cent to Rs 12.30 trillion. "Credit card spending growth moderated to around 8 per cent on a Y-o-Y basis in January 2026, with month-on-month momentum steady and broadly in line with December. January saw a natural dip after strong festive spending,' said Sweta Padhi, an analyst at IDBI Capital.
"Industry-wide growth has slowed from the mid-teens since last year and has not yet revived, with November's 11 per cent festive growth reverting to 8 per cent. So far in the year, the slowdown in cards additions is driven by tighter underwriting norms and regulatory restrictions on unsecured lending, which have reduced issuance and overall spending levels,' said Padhi.
Most major credit card issuers reported a moderation in spending in January.
HDFC Bank, the largest issuer, saw spending decline 1.25 per cent M-o-M to Rs 56,518.29 crore, from Rs 57,235.5 crore in December.
ICICI Bank reported 4.59 per cent decline in spending to Rs 35,178.16 crore, while Axis Bank saw spends fall 2.72 per cent to Rs 22,550.86 crore. Spending on cards issued by SBI Card dropped 4.68 per cent to Rs 38,026.5 crore.
HDFC Bank had 26.10 million cards in circulation in January, maintaining its lead in issuances. SBI had 21.90 million cards, followed by ICICI Bank (18.77 million) and Axis Bank (15.73 million). "Credit card additions have slowed, especially among mid-sized private banks, as they turned their focus towards quality. Earlier regulatory risk-weight hikes on unsecured lending had prompted caution,' said Saurabh Bhalerao, Associate Director, BFSI CareEdge Ratings. -- Aathira Varier, Business Standard
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