Credit Card Spending Hits Five-Year Peak in India
Credit card spending in India climbed to a record ₹2.17 lakh crore in September 2025, marking the highest level in five years. According to data from CareEdge Ratings, this represented a 23% year-on-year and a 13% month-on-month increase.
Drivers Behind the Surge
The growth in spending was supported by festive season demand, higher credit card issuance, reduced GST rates on selected consumer goods, and aggressive promotional campaigns led by banks.
CareEdge Ratings noted that "while credit card spending strengthened considerably, the 23% annual rise was marginally below the 24% reported in the same month of the previous year, indicating a mild softening in growth momentum despite resilient consumer spending."
Private Banks Lead the Market
Private sector banks maintained their leading position in India’s credit card market, capturing 74.2% of total spending in September 2025. However, public sector banks are gradually narrowing the gap as overall usage expands.
Market Outlook
Experts suggest that continued consumer enthusiasm and targeted bank incentives are likely to sustain elevated credit card spend levels into the next quarter.
Author’s summary: India’s credit card spending surpassed ₹2 lakh crore in September 2025, marking robust festive-driven growth dominated by private banks.