India’s Credit Card Base Hits 121.5 Million in June 2026
By ThePip Desk
India’s credit card sector experienced its strongest growth in over two years, adding 1.14 million new cards in June 2026 to reach a total of 121.5 million.
India’s credit card sector experienced its most significant expansion in over two years during June 2026, adding 1.14 million new cards. This surge pushed the national credit card base to a total of 121.5 million.
This notable acceleration follows a period of heightened caution within the banking industry. The Reserve Bank of India (RBI) had implemented stricter regulations on unsecured lending in late 2023 to mitigate potential systemic risks.
Key Issuers Drive Growth
Market leaders spearheaded this growth in new card issuance. Several major banks contributed substantially to the increase during June.
HDFC Bank, the country’s largest issuer, added 163,000 new cards.
SBI Cards closely followed, contributing 162,000 additions.
ICICI Bank issued 151,000 new cards during the month.
Federal Bank also showed significant progress, adding 101,000 cards.
Federal Bank is actively working towards integrating the acquired credit card portfolio of Standard Chartered India. This integration is projected to be completed by the end of 2026.
Consistent Consumer Spending Patterns
Despite the increased pace of new card issuance, consumer spending patterns remained robust. Total credit card transactions in India surpassed Rs 2 lakh crore for the second consecutive month.
Total spending reached Rs 2.01 lakh crore in June 2026.
This figure represents a 9.8% increase compared to June 2025.
Spending saw a slight decrease from May’s Rs 2.02 lakh crore.
HDFC Bank maintained its dominant position in terms of spending volume. SBI Cards also held a significant portion of the market.
HDFC Bank accounted for approximately 29.5% of total spending.
SBI Cards held a 20.4% market share in transactions.
Future Outlook for Credit Quality
Looking ahead, investors and market observers will closely monitor how banks balance aggressive customer acquisition with maintaining portfolio credit quality. The industry has largely recovered from the initial impact of the RBI’s higher risk-weight norms, which increased the cost of unsecured lending.
Long-term profitability will depend on the sustained health of repayment rates. Additionally, the ability of banks to successfully integrate acquired portfolios and compete effectively for premium customers will be crucial trends in the upcoming quarters.