Credit Card Growth Slows as Private Banks Tighten Grip

25 Dec 2025 CW Team

The number of new credit cards issued fell to 4.4 million in the second quarter of FY26, marking a steep 28 per cent year-on-year decline from 6.1 million in the same period last year. As a result, growth in cards in circulation remained subdued at 6 per cent year-on-year, pointing to a broader moderation in consumer credit expansion.

Outstanding credit card balances also reflected the slowdown, with growth easing to 9 per cent year-on-year in the second quarter of FY26, compared with 20 per cent growth recorded in FY25. The deceleration was largely attributed to weaker trends in new card issuance.

Despite the overall slowdown, private sector banks continued to strengthen their position. Nearly 78 per cent of all new credit cards issued during the quarter came from private banks, while NBFCs and other players continued to lose market share. Private banks’ share in new card issuance rose by around 730 basis points compared with FY25 levels.

Asset quality indicators showed a mixed trend. Late-stage delinquencies (PAR 90+) had surged to 15 per cent in FY25 but moderated to 8.9 per cent by the second quarter of FY26. Early-stage delinquencies also improved, although mid-stage delinquencies for private banks edged up during the same period.

On spending trends, leading issuers continued to gain ground. Citing RBI data, the report said SBI Cards and HDFC Bank gained 172 basis points and 96 basis points, respectively, in credit card spending market share in FY26 year-to-date. In contrast, ICICI Bank, Kotak Mahindra Bank, RBL Bank and IndusInd Bank ceded share.

Across key retail loan segments such as personal loans, home loans and auto loans, public sector banks (PSBs) continued to gain market share from private lenders. JM Financial noted that PSBs improved their disbursement market share across both unsecured and secured segments, supported by higher average ticket sizes, improving asset quality and a gradual recovery in loan growth during the first half and second quarter of FY26.

India’s credit card industry is seeing a clear slowdown in growth, with new card issuance declining sharply even as private sector banks consolidate their dominance, according to a report by JM Financial Institutional Securities. The number of new credit cards issued fell to 4.4 million in the second quarter of FY26, marking a steep 28 per cent year-on-year decline from 6.1 million in the same period last year. As a result, growth in cards in circulation remained subdued at 6 per cent year-on-year, pointing to a broader moderation in consumer credit expansion. Outstanding credit card balances also reflected the slowdown, with growth easing to 9 per cent year-on-year in the second quarter of FY26, compared with 20 per cent growth recorded in FY25. The deceleration was largely attributed to weaker trends in new card issuance. Despite the overall slowdown, private sector banks continued to strengthen their position. Nearly 78 per cent of all new credit cards issued during the quarter came from private banks, while NBFCs and other players continued to lose market share. Private banks’ share in new card issuance rose by around 730 basis points compared with FY25 levels. Asset quality indicators showed a mixed trend. Late-stage delinquencies (PAR 90+) had surged to 15 per cent in FY25 but moderated to 8.9 per cent by the second quarter of FY26. Early-stage delinquencies also improved, although mid-stage delinquencies for private banks edged up during the same period. On spending trends, leading issuers continued to gain ground. Citing RBI data, the report said SBI Cards and HDFC Bank gained 172 basis points and 96 basis points, respectively, in credit card spending market share in FY26 year-to-date. In contrast, ICICI Bank, Kotak Mahindra Bank, RBL Bank and IndusInd Bank ceded share. Across key retail loan segments such as personal loans, home loans and auto loans, public sector banks (PSBs) continued to gain market share from private lenders. JM Financial noted that PSBs improved their disbursement market share across both unsecured and secured segments, supported by higher average ticket sizes, improving asset quality and a gradual recovery in loan growth during the first half and second quarter of FY26.

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..