Mumbai, March 4
Total credit card spending in India reached Rs 1,84,100 crore (Rs 1,841 billion) in the month of January, marking a strong 14 per cent growth (year-on-year), a report showed on Tuesday.
The total credit card transaction volume in January 2025 stood at 430 million, reflecting a 31 per cent year-on-year growth, despite a 1 per cent month-on-month (MoM) decline due to the high base of December 2024.
The slowdown in transaction volume is attributed to increased caution driven by rising delinquencies, according to the report by Asit C Mehta Investment Interrmediates Ltd.
“Although the credit card data saw a moderation at an industry level in terms of new card dispatches, card spendings and transaction per card but the leading banks such as HDFC and SBI saw higher card dispatches and consequently leading to market share gain,” said Akshay Tiwari, AVP-Equity Research Analyst.
The number of outstanding credit cards stood at 109 million, declining by 1.2 million cards from December 2024. The average spending per card decreased slightly by 1 per cent (on-month) to Rs 16,911, though it registered a marginal 1 per cent YoY increase.
The average spend per transaction was Rs 4,282, showing a 15 per cent YoY decrease, reflecting evolving consumer behaviour and macroeconomic conditions.