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Credit Card Spending Growth Slows in September Despite 9.5% Rise in India's Credit Card Base: Jefferies
Sentiment: NeutralHigh Priority
What Happened?
India's credit card base grew by 9.5% year-on-year in September, but spending declined by 6.2% compared to the previous year, according to Jefferies. This indicates a slowdown in spending momentum despite the increase in credit cards.
Key points
- The total number of credit cards in force reached 123.8 million in September 2026.
- Credit card spending declined 6.2% year-on-year in September, compared to a 5.5% increase in August.
- The decline in spending reflects a high base from last year, influenced by post-GST spending and an earlier festive season.
- Retail digital transactions, excluding NEFT, rose 16.4% year-on-year to Rs 44 trillion.
- Credit cards accounted for 4.64% of total retail digital spending, up 12 basis points month-on-month.
Key insights
- The decline in spending could impact the revenue of credit card issuers.
- Increased digital transactions may indicate a shift towards online spending.
- The moderation in spending growth might lead to cautious consumer sentiment in the upcoming festive season.
Why it matters
The slowdown in credit card spending may indicate changing consumer behavior and economic conditions.
Source
Times Now
