Credit-card spending growth slows to 5.5% as SBI Cards loses share

India’s credit-card spending reached Rs 2 lakh crore in August, but growth slowed to 5.5% year on year. SBI Cards’ spend growth fell to 7%, with its market share declining to 17.5%, while HDFC Bank held a 30% share.

— Source publishedFri, 25 Sept, 2026, 15:56 IST·First seen Fri, 25 Sept, 2026, 16:14 IST·Source Financial Express · BrandWagon

What happened

India’s credit-card spending growth slowed in August, with SBI Cards losing spending share amid weaker corporate and online spends. HDFC Bank gained share,

Key facts

  • Industry credit card spending growth: 5.5% YoY in August 2026, versus 7.1% in July
  • Industry spending: Rs 2 lakh crore, down 2.8% MoM
  • SBI Cards spending growth: 7% YoY, versus 22% in July; down 11% MoM
  • SBI Cards industry spending share: 17.5%, down from 19%
  • Cards-in-force: 122.7 million, up 9.5% YoY
  • SBI Cards added 190,000 cards; cards-in-force growth 7.6% YoY
  • HDFC Bank spending share: 30%; ICICI Bank: 16%; Axis Bank: about 11%
  • SBI Cards spending per card: Rs 15,400, down from Rs 17,400
  • Retail digital spending: Rs 44.8 trillion, up 18% YoY
  • Credit-card share of digital spending: 4.5%

Why this matters

SBI Cards’ declining share and lower spend per card may create partnership or portfolio-acquisition openings, particularly among customers needing stronger rewards and engagement propositions.

What to watch

  • Monthly RBI card-spend data: total spending growth, active-card growth and spend per card.
  • SBI Cards' quarterly market-share trend, transaction growth, card additions and customer-acquisition costs.
  • HDFC Bank's card issuance pace and premium-card spending share.
  • Changes in reward programs, interchange economics, merchant discount rates or card-network promotional campaigns.
  • Asset-quality indicators: credit-card delinquencies, write-offs, revolver rates and provisions, which could constrain issuer-led spending incentives.
  • Track whether SBI Cards increases cashback, merchant offers, travel benefits or co-brand card launches to recover spend per card.
  • Watch for HDFC Bank to defend its 30% spending share through premium-card campaigns, merchant tie-ups and portfolio cross-sell.
  • Expect competing issuers to target SBI cardholders with balance-transfer, upgrade and lifetime-free-card offers.
  • Monitor whether slower spend growth prompts issuers to prioritize fee income, revolving balances and cross-sold loans over pure transaction-volume growth.