Bank card spending surges 23% in September to Rs 2.17 lakh crore

Bank card spending in India climbed sharply by 23 per cent year-on-year to Rs 2.17 lakh crore in September, pushed by festive season purchases, engaging gives and better card issuances, in keeping with knowledge compiled by CareEdge Scores. The rise mirrored buoyant shopper sentiment, aided by GST fee cuts on choose gadgets and an total pick-up in city consumption.

On a month-on-month foundation, spending elevated 13 per cent, highlighting continued enthusiasm amongst customers forward of the festive season. Although the tempo of enlargement was barely decrease than the 24 per cent development seen final yr, the information factors to a powerful restoration in discretionary expenditure and broader digital cost adoption.

Personal banks dominate, however public lenders catch up

The whole variety of lively bank cards rose to 11.3 crore in September 2025, up 7 per cent from 10.6 crore a yr earlier. Month-on-month development stood at 1 per cent, indicating constant enlargement in card utilization.

Personal sector banks continued to guide the market by means of focused acquisitions, co-branded playing cards and improved digital providers. Nevertheless, the general development fee was extra average in comparison with the 14 per cent enlargement recorded within the earlier yr. The slower tempo displays a cautious strategy by lenders who’re specializing in higher-quality debtors in gentle of rising defaults inside unsecured loans.

CareEdge knowledge additionally confirmed a shift in market share. Personal sector banks’ share fell by 130 foundation factors to 74.2 per cent from 75.5 per cent a yr in the past. In distinction, Public Sector Banks (PSBs) strengthened their place, supported by wider attain in smaller cities, government-led initiatives, and expanded digital networks. Bigger PSBs accounted for many of this development, whereas smaller ones contributed a modest 0.5 per cent.

Common spending per card reached Rs 19,144 in September, rising 15 per cent year-on-year and 12.2 per cent month-on-month. The rise was pushed by festive buying, e-commerce gross sales and improved loyalty programmes launched by banks.

Prospects of personal banks spent a median of Rs 20,011 per card, up 3 per cent from a yr earlier. Public sector financial institution prospects, in the meantime, recorded a stronger 30 per cent bounce to Rs 16,927, reflecting rising consolation with digital transactions and aggressive reward schemes.

Excellent bank card balances stood at Rs 2.82 lakh crore in September, barely under Rs 2.89 lakh crore in August however larger than Rs 2.72 lakh crore in the identical month final yr. The share of bank card dues in complete retail loans fell by 40 foundation factors to 4.5 per cent, indicating regular repayments regardless of larger spending.

This moderation suggests debtors are managing their credit score nicely, at the same time as festive bills peak. The information additionally highlights a wholesome steadiness between consumption and reimbursement, supported by bettering monetary self-discipline amongst cardholders.

Bank card transactions are anticipated to stay robust by means of the remainder of the yr, supported by journey spending, vacation buying and continued digital penetration. Monetary establishments are prone to keep a selective strategy in issuing new playing cards, specializing in prospects with secure reimbursement histories.