NEW DELHI — Credit card spending in India increased 6 percent from a year earlier in February, though activity slowed on a monthly basis, signaling softer near-term consumption trends, according to a report released Monday.
Spending totaled Rs 1,772 billion during the month, down 11 percent from January, the report by Asit C. Mehta Investment Intermediates Limited said.
Despite the monthly decline, credit card issuance remained strong. Banks added about 1.05 million new cards in February, up 7.7 percent year over year and marking a 23-month high. Total cards in circulation reached approximately 118 million, reflecting continued expansion in the customer base.
Transaction volumes fell 8.5 percent from the previous month to 491 million, but remained up 23.9 percent compared with a year earlier, suggesting that usage levels are still relatively healthy even as spending values ease.
The report attributed much of the slowdown to India’s four largest banks, which together account for roughly 76 percent of total industry spending, underscoring their significant influence on broader trends.
February is typically a weaker month for credit card activity, but analysts said the sharper-than-usual decline points to underlying softness in consumption.
At the same time, the gap between strong card issuance and weaker spending indicates that banks are prioritizing customer acquisition over immediate usage, a strategy that could support future growth in transactions.
Average spending per card declined to Rs 15,056, down 11.7 percent month over month and 1.6 percent year over year, reflecting both softer consumption and the impact of rapid additions to the card base.
Among major lenders, State Bank of India posted the strongest annual growth in spending at 30.3 percent, while other leading banks showed slower growth compared with the past two years.
The market remains highly concentrated, with the top 10 banks accounting for about 93 percent of total credit card spending, the report noted. (Source: IANS)
