Credit Card Spending Grows 11.5% to ₹1.89 Lakh Crore in November 2025: CareEdge
India's credit card spending grew 11.5% year-on-year to ₹1.89 lakh crore in November 2025, driven by expanding card base reaching 11.5 crore from 10.7 crore previously. Growth was led by deeper penetration rather than higher per-card spending, with digital transactions accounting for 60% of volumes. Public sector banks gained market share through mass segment expansion while private banks turned selective amid regulatory scrutiny.
*this image is generated using AI for illustrative purposes only.
India's credit card spending demonstrated resilient growth in November 2025, rising 11.5% year-on-year to ₹1.89 lakh crore despite a sequential moderation following the festive season, according to CareEdge Ratings. The expansion reflects sustained digital consumption patterns and deeper card penetration across the country, even as transaction behaviors shifted post-festival period.
Growth Driven by Penetration Over Ticket Size
The spending increase was primarily supported by an expanding card base, which grew to 11.5 crore outstanding cards in November from 10.7 crore in the previous year. CareEdge highlighted that growth stems from wider adoption rather than higher spending per card, indicating market maturation.
| Parameter | November 2025 | November 2024 | Growth |
|---|---|---|---|
| Total Spending | ₹1.89 lakh crore | ₹1.70 lakh crore | +11.5% |
| Outstanding Cards | 11.5 crore | 10.7 crore | +7.5% |
Per-card spending declined sequentially but remained higher than the previous year, signaling that cards are being used more consistently across everyday categories rather than for episodic discretionary purchases. This shift indicates a maturing credit card ecosystem where usage patterns are becoming more normalized.
Market Share Dynamics Shift
Private sector banks maintained their dominance with nearly three-fourths of total spending but ceded market share as tighter underwriting standards and delinquency concerns slowed incremental issuance. Public sector banks capitalized on this opportunity by expanding issuance in mass and co-branded segments while leveraging their stronger reach beyond large urban centers.
CareEdge observed that public sector banks benefited from improved digital engagement, translating into higher utilization among newer cardholders. Despite these gains, their overall spending share remained well below that of private lenders, indicating significant room for further expansion.
Digital Transactions Lead Growth
Digital channels continued to anchor credit card usage, accounting for approximately 60% of total transaction volumes. Online spending growth outpaced offline channels, reinforcing the structural shift toward e-commerce and app-based payments across all consumer segments.
| Channel Type | Share of Volume | Growth Trend |
|---|---|---|
| Digital Transactions | ~60% | Outpacing offline |
| Offline Transactions | ~40% | Moderate growth |
CareEdge noted particularly strong digital traction among public sector banks, suggesting narrowing gaps in customer engagement and platform capabilities compared to their private sector counterparts.
Credit Growth Moderates Amid Regulation
Outstanding credit card balances rose marginally in absolute terms but declined as a share of total retail loans. CareEdge attributed this trend to tighter regulatory norms on unsecured lending and faster growth in secured retail products, prompting banks to recalibrate portfolio risk management strategies.
Outstanding balances are increasingly concentrated in mid- and high-limit cards, indicating a strategic shift toward better-quality borrowers rather than rapid balance expansion. Market concentration remains high, with a small group of leading banks accounting for around 80% of total spending.
Outlook Remains Measured
CareEdge expects credit card spending to remain supported by services consumption, digital commerce expansion, and gradual adoption in non-metro markets. However, stricter underwriting standards, selective promotional strategies, and enhanced regulatory scrutiny are likely to restrain aggressive growth patterns, pushing lenders toward more stable, risk-adjusted expansion approaches in the coming periods.
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