Credit Card Industry in India Rebounds with 425,000 Net Additions in July

1 min read     Updated on 27 Aug 2025, 06:02 AM
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Overview

India's credit card industry showed strong recovery in July, with net new card additions reaching a five-month high of 425,000, pushing total cards to 111.60 million. Credit card spending increased by 5.5% month-over-month to Rs 1.93 lakh crore, a 33% year-over-year rise. HDFC Bank led with 315,000 new cards, followed by Axis Bank, ICICI Bank, and SBI Cards. Mid-sized lenders like IDFC First Bank and Federal Bank also showed strong growth. Despite challenges for some players like RBL Bank, the overall industry outlook remains positive with analysts expecting improved traction in unsecured loans.

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*this image is generated using AI for illustrative purposes only.

India's credit card industry showed strong signs of recovery in July, marking a significant turnaround from the previous month's stagnation. The sector witnessed a substantial increase in new card issuances and spending, indicating renewed consumer confidence and economic activity.

Record Growth in Card Issuances

July saw net new credit card additions reach a five-month high of 425,000, pushing the total number of credit cards in circulation to 111.60 million. This growth is particularly noteworthy when compared to June's marginal contraction of 235 cards, highlighting a robust recovery in the sector.

Spending Surge

Credit card spending also saw a significant uptick, rising by 5.5% month-over-month to Rs 1.93 lakh crore. This figure represents a remarkable 33% increase compared to July of the previous year, underscoring the growing reliance on credit cards for transactions.

Bank-wise Performance

Several major banks contributed to this growth:

Bank New Cards Added Total Cards
HDFC Bank 315,000 24.80 million
SBI Cards 66,640 21.20 million
ICICI Bank 67,664 -
Axis Bank 122,000 -

Among mid-sized lenders, IDFC First Bank and Federal Bank each added over 80,000 cards, showcasing strong growth in their credit card portfolios.

Challenges and Outlook

Despite the overall positive trend, some players faced challenges. RBL Bank continued to see a decline, losing over 41,000 cards in July. However, analysts noted that incremental delinquencies have plateaued, suggesting a stabilization in credit risk.

The credit card segment has shown impressive growth, with a 25% CAGR between FY21 and FY24. While the year-on-year growth as of May slowed to 8.5%, the July figures indicate a potential resurgence in the industry.

Future Prospects

Analysts are optimistic about the sector's future, expecting improved traction in unsecured loans. The recovery in July, coupled with increased spending and new card issuances, points to a positive outlook for the credit card industry in India.

As the economy continues to recover and digital transactions become more prevalent, the credit card industry is likely to play an increasingly important role in India's financial landscape.

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