Credit card spends jump to ₹2.19 lakh crore in March; HDFC hits record share, SBI outperforms

Credit card spending in India rose sharply to ₹2.19 lakh crore in March 2026, marking a strong 23.8% month-on-month (MoM) increase, though annual growth remained relatively subdued at 8.9% year-on-year (YoY). The sequential spike was largely driven by year-end seasonality and a low base effect, rather than a broad-based recovery in consumption, the monthly credit card report for March 2026 from Asit C. Mehta Investment Intermediates stated. 

At the issuer level, HDFC Bank consolidated its leadership, achieving a record ~30% share in total credit card spends, the highest in recent years. Meanwhile, State Bank of India (SBI) emerged as a key outperformer, delivering 31% YoY growth in spends and expanding its market share by over 300 basis points to 19.3%, reflecting strong momentum in both acquisition and usage. 

Spending growth

Despite the strong sequential uptick, underlying consumption trends remain moderate. The industry continues to show a divergence between robust card issuance and muted spend growth, suggesting that incremental growth is being driven more by new customer additions rather than higher per-user spending. 

MUST READ: Tax alert: Credit card spending can invite notices — How to avoid penalties

Transaction volumes

The total number of credit cards in force reached 118 million, reflecting an 8% YoY increase, indicating continued expansion of the credit card ecosystem. Monthly issuance remained healthy at around 0.9 million cards, highlighting sustained onboarding momentum. 

Transaction volumes also remained strong at 574 million, registering 16.9% MoM growth and 25.4% YoY growth. This suggests that while average spending per user remains stable, usage frequency is increasing, pointing to deeper penetration of cards in everyday transactions. 

MUST READ: Now control your auto-debit payments: RBI’s new rules explained

Mid-sized banks

While large private banks continue to dominate overall market share, mid-sized players are gaining traction. Federal Bank reported a sharp 130% YoY growth in transaction volumes, supported by aggressive card issuance strategies. Similarly, IDFC First Bank recorded 28% YoY growth in cards in force, steadily improving its market position.  This indicates a broadening competitive landscape, with smaller banks leveraging targeted strategies to capture incremental market share.

MUST READ: Credit card rewards reset: HDFC, SBI, Axis cut perks; what it means for you

Spending behaviour

Average spending metrics present a mixed picture. Average spend per card rose 22.8% MoM, reflecting seasonal demand, but remained largely flat on a YoY basis (+0.9%), underscoring the lack of strong consumption growth.

SBI stood out again, reporting a 23% YoY increase in average spend per card, indicating stronger engagement among its cardholders. In contrast, ICICI Bank saw flat growth, while Kotak Mahindra Bank recorded a decline in spends, highlighting divergence among top issuers.

Overall, the credit card industry appears to be transitioning from a high-growth consumption phase to a more normalised trajectory. While card issuance and transaction volumes remain healthy, spending growth is stabilising in single digits, pointing to a maturing market environment.