Indians swiped their credit cards more than ever this September, with spending surging by 25 per cent compared to last year. This was driven by strong festive demand and a favourable base effect. According to RBI data reported by Business Standard, credit card transactions reached Rs 1.76 lakh crore in September 2024, marking the highest growth in six months. Last year’s September tally stood at Rs 1.42 lakh crore, underscoring the strong consumer appetite this festival season.
In comparison, August recorded credit card spending of Rs 1.68 lakh crore. The report attributed the rise to a lower base in the previous year and the vibrant festival season. “The growth in credit card spending is driven by a lower base in the previous year and the festival season,” said Saurabh Bhalerao, head of BFSI research at CareEdge Ratings. “There has been an increase in promotional schemes like equated monthly instalments during the festival period,” he added.
The base effect in this context highlights how last year’s credit spending levels have influenced this year’s rise in spending. Saurabh Bhalerao further commented, “October is also likely to see a rise in spending due to the festival season and associated promotional activities,” as reported. This follows remarks from RBI Governor Shaktikanta Das, who noted that while festival season demand shows mixed signals, the positives are largely outweighing the negatives.
India’s credit card landscape is seeing notable growth, with the total number of credit cards rising by 14 per cent year-over-year, reaching 106.11 million in September 2024, up from 93 million the previous September. HDFC Bank leads as the largest issuer, with 22.4 million cards in circulation, followed by SBI with 19.5 million, ICICI with 17.56 million, and Axis Bank with 14.79 million cards.
Consumer spending on HDFC credit cards surged by 35 per cent compared to September 2023, while SBI saw an 11 per cent increase, ICICI 24 per cent, and Axis Bank 15.1 per cent. Despite this growth, Axis Bank has limited new card issuance, pointing to early signs of financial stress and rising indebtedness, as per the report.
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