India credit-card spending growth slows to 5.5% in August as SBI Cards loses share

Credit-card spending reached Rs 2 lakh crore in August, up 5.5% year on year but down 2.8% from July. SBI Cards’ spending fell 11% month on month and its market share slipped to 17.5%, while HDFC Bank gained to 30%.

— Source publishedFri, 25 Sept, 2026, 15:56 IST·First seen Sun, 27 Sept, 2026, 14:17 IST·Source Financial Express (via Wayback)

What happened

India’s credit-card spending growth slowed in August despite stronger card issuance. SBI Cards saw a sharper spending decline and loss of share, while HDFC Bank

Key facts

  • Industry credit card spending grew 5.5% YoY in August 2026, versus 7.1% in July
  • Industry spending was Rs 2 lakh crore, down 2.8% MoM
  • SBI Cards spending grew 7% YoY versus 22% in July and fell 11% MoM
  • SBI Cards industry spending share fell to 17.5% from 19%
  • Cards-in-force reached 122.7 million, up 9.5% YoY
  • HDFC Bank spending share rose to 30%; ICICI Bank fell to 16%; Axis Bank was about 11%
  • Retail digital spending grew 18% YoY to Rs 44.8 trillion
  • Credit cards represented 4.5% of retail digital spending

Why this matters

HDFC Bank’s continued card-share gains amid slowing industry spend may strengthen its payments ecosystem and make distribution partnerships or targeted portfolio acquisitions more strategically valuable.

What to watch

  • September-October credit-card spending growth and whether festive-season volumes reaccelerate above August's 5.5% year-on-year pace.
  • SBI Cards' new-card issuance, active-card base, reward-program changes and promotional campaign intensity.
  • HDFC Bank's share trajectory, merchant offer activity and approval/activation trends.
  • Growth in EMI transactions and average transaction values in electronics, travel, jewelry, premium apparel and home categories.
  • RBI commentary or issuer disclosures indicating tighter unsecured-credit underwriting, rising delinquencies or changes in risk controls.
  • Shift festive marketing budgets toward HDFC Bank and other share-gaining issuer partnerships while maintaining selective SBI Card visibility.
  • Prioritize card-linked offers for high-margin categories and set merchant-funding caps before joining issuer-led cashback campaigns.
  • Increase installment/EMI conversion tracking by issuer, category and ticket size to distinguish demand weakness from issuer-specific share migration.
  • Prepare value-oriented bundles, bank-neutral loyalty incentives and lower-cost payment options if credit-card growth remains subdued.