logo
Swipe fest credit card spends top Rs 21 lakh crore on consumer demand

Swipe fest credit card spends top Rs 21 lakh crore on consumer demand

Time of India25-04-2025

Credit card spending
in India surged over 15% in FY25 to a record ₹21.16 lakh crore, up from ₹18.32 lakh crore in the previous fiscal, according to data from the
Reserve Bank of India
(RBI).
#Pahalgam Terrorist Attack
India pulled the plug on IWT when Pakistanis are fighting over water
What makes this India-Pakistan standoff more dangerous than past ones
The problem of Pakistan couldn't have come at a worse time for D-St
The sharp rise underscores robust
consumer demand
and the growing shift towards digital, credit-based transactions, especially among urban and digitally-savvy users.
March 2025 alone saw record monthly spends of ₹2.02 lakh crore, up from ₹1.64 lakh crore in March 2024, reflecting strong discretionary spending at the fiscal year-end. February figures stood at ₹1.68 lakh crore.
The number of credit cards in circulation also grew to 10.98 crore by March 2025, up from 10.18 crore a year earlier, indicating sustained confidence in the economy and a preference for credit-led consumption.
HDFC Bank
led net new issuances in March with 2.2 lakh cards, followed by
SBI Cards
at 1.6 lakh,
Axis Bank
at 1.3 lakh, and
ICICI Bank
at 97,799. Amid signs of easing stress in the unsecured lending space, lenders are cautiously optimistic.
"We are seeing stabilisation and improvement in the credit card portfolio and we will be building back acquisition," said Arjun Chowdhry, Group Executive, Axis Bank. "The growth will be brought back cautiously and in a calibrated manner. We are now looking at faster growth than we had because we have seen a stabilisation that will allow us to deliver on that growth."
In total, 5.7 lakh new cards were added during March, up from 4.4 lakh in February, though still below the 12-month average of 7.1 lakh. Some banks, however, saw a decline.
Kotak Mahindra Bank
, which had its RBI-imposed card issuance ban lifted in February 2025, reported a net decline of 1.19 lakh cards.
RBL Bank
also lost 35,000 cards following the end of its partnership with
Bajaj Finance
.
Analysts expect card spends to remain stable in FY26, driven by consumption momentum, though new card issuances may remain moderate. "Lenders are shifting focus to cross-selling and maintaining credit quality rather than chasing aggressive growth," said Bunty Chand, analyst at IDBI Capital.
The RBI, which began macroprudential tightening in late 2023 to temper the rise in unsecured lending, recently eased risk weights for NBFC and microfinance loans but retained tighter norms for unsecured loans, a sign that cautious growth will remain the sector's mantra in the near term.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Pakistan once again choses arms over 'aam aadmi'
Pakistan once again choses arms over 'aam aadmi'

Time of India

time35 minutes ago

  • Time of India

Pakistan once again choses arms over 'aam aadmi'

Pakistan might have once again made it clear that it will prioritise arms over the 'aam aadmi .' The government of Prime Minister Shehbaz Sharif announced its federal budget for fiscal year 2025-26 on Tuesday, shrinking overall spending by 7% to 17.57 trillion rupees ($62 billion) but raising defence expenditure by a steep 20%. The Pakistan government presented a budget that allocated 2.55 trillion rupees ($9 billion) for defence spending in FY26, compared to 2.12 trillion in the fiscal year ending this month. It projected a fiscal deficit of 3.9% against a targeted 5.9% deficit in 2024-25. Inflation was projected at 7.5% and growth at 4.2%. Pakistan has been back from the brink of bankruptcy and is still not out of danger. Its economy, which broke down after the pandemic, is barely recovering while the country survives on loans. Live Events Pakistan aims to spur economic growth while allocating funds for a significant defence budget increase, following setbacks from India's retaliatory strikes last month. It also has to manage remaining within the discipline of its International Monetary Fund (IMF) programme and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market. Pakistan lags far behind its peers Pakistan's growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and 6.0% growth is expected in 2025, according to the Asian Development Bank. Compared to India, Pakistan is light years behind. Sharif's government has projected 4.2% economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7%, against an initial target of 3.6% set in the budget last year. Expansion of the economy should be aided by a sharp drop in the cost of borrowing, the government says, after a succession of interest rate cuts by the central bank. But economists warn that monetary policy alone may not be enough, with fiscal constraints and IMF-mandated reforms still weighing on investment. Finance Minister Muhammad Aurangzeb said on Monday that he wanted to avoid Pakistan's boom and bust cycles of the past. Pakistan's struggling economy Pakistan's debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the country's economic survey. Pakistan's foreign-exchange reserves have barely surpassed $15 billion, while India's reserves exceed $688 billion. The years post covid saw Pakistan's economy unravel. Pakistan, the richest country in South Asia 50 years ago, was reduced to the poorest due to bad governance, military dictatorships and adoption of promoting cross-border terror as state policy. Just as it witnessed political turmoil over the jailing of its former Prime Minister Imran Khan and a virulent insurgency in Balochistan, bankruptcy stared it in the face. Planning Minister Ahsan Iqbal urged Pakistanis to cut down on tea because the country imported tea and for that it had to borrow money. The statement highlighted the precarious condition of Pakistan's foreign reserves. Pakistan's $350 billion economy struggled as inflation rose to record high of 38.50% in May 2023, with growth turning negative, reserves shrinking to barely a couple of weeks of controlled imports, and interest rates jumping to 22%. It had reserves of just $3.7 billion remaining. For nearly five years, it remained on the grey list of the Financial Action Task Force (FATF) for terror funding which made access to loans difficult. The economic crisis was the most prolonged, pushing the country to the brink of a sovereign default in the summer of 2023. With Pakistan's debt-to-GDP ratio in a danger zone of 70%, and between 40% and 50% of government revenues earmarked for interest payments in 2023, only default-stricken Sri Lanka, Ghana and Nigeria were worse off. What pulled it back from the brink of sovereign default was a $3 billion short-term financial bailout package from the International Monetary Fund (IMF). Long-time allies Saudi Arabia, the UAE and China also rolled over billions of dollars in loans.

'Not worrisome' : SBI says credit quality strong and inflation impact limited; household borrowing rises
'Not worrisome' : SBI says credit quality strong and inflation impact limited; household borrowing rises

Time of India

timean hour ago

  • Time of India

'Not worrisome' : SBI says credit quality strong and inflation impact limited; household borrowing rises

India's household debt levels have risen steadily in recent years, but the underlying credit quality and loan composition suggest the increase is not alarming, the State Bank of India said in a report released Monday. The analysis, citing Reserve Bank of India data and internal assessment, stated that household debt remains 'manageable and not worrisome,' with nearly two-thirds of retail borrowers classified as prime or above, ANI quoted. It attributed the increase to a broader borrower base rather than a sharp rise in average loan size. According to SBI, productive loans—such as those for agriculture, business, or education—make up 30% of the household credit portfolio, while home and vehicle loans, considered asset-creating, contribute another 25%. Consumption-led credit, including personal loans, credit cards, and consumer durable financing, accounts for 45% of household borrowing, the report said. SBI noted that India's household debt as a share of GDP stands at 42%, significantly lower than the 49.1% average seen across other emerging market economies (EMEs). The report also pointed to India's ongoing monetary easing cycle as a source of relief. The Reserve Bank of India has already lowered the benchmark repo rate by 100 basis points, helping reduce interest costs for households. As a result, nearly 80% of the retail and MSME loan books—linked to the External Benchmark Lending Rate (EBLR)—are expected to benefit. The SBI report estimated this could result in savings of Rs 50,000–60,000 for households over time, as the easing cycle is likely to continue for another two years. Last week, the RBI announced a 50-basis-point cut in the policy repo rate to 5.5%, along with a phased reduction in the cash reserve ratio (CRR) by 100 basis points starting September 6. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

RBI to re-issue Sovereign Green Bonds of Rs 5000 cr in upcoming Rs 30,000 cr govt securities auction
RBI to re-issue Sovereign Green Bonds of Rs 5000 cr in upcoming Rs 30,000 cr govt securities auction

India Gazette

time2 hours ago

  • India Gazette

RBI to re-issue Sovereign Green Bonds of Rs 5000 cr in upcoming Rs 30,000 cr govt securities auction

New Delhi [India], June 10 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of sovereign green bonds (SGrBs) as part of the upcoming government securities (G-Secs) auction scheduled for June 13, 2025. As per a notification by RBI on Monday, the total notified amount for sale is Rs 30,000 crore, which includes Rs 5,000 crore of 6.98 per cent SGrBs maturing in 2054. RBI said 'Government of India (GoI) has announced the sale (re-issue) of three dated securities for a notified amount of Rs 30,000'. Sovereign green bonds are government-issued bonds specifically aimed at financing environmentally sustainable projects. The proceeds from these bonds are allocated to sectors such as renewable energy, clean transportation, sustainable water management, and energy efficiency. These bonds serve both to promote climate-conscious growth and to attract environmentally focused investors. In addition to the sovereign green bonds, two other dated securities will also be re-issued: Rs 11,000 crore of 6.79 per cent government securities maturing in 2031, and Rs 14,000 crore of 7.09 per cent securities maturing in 2074. The auction will be conducted using a multiple price method via RBI's e-Kuber platform. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m. on the auction day. The results will be announced on the same day, and successful bidders will need to make payments on June 16, 2025. The government also retains the option to accept up to Rs 2,000 crore of additional subscriptions against each of the securities. The stocks will be eligible for 'When Issued' trading from June 10 to June 13, 2025, allowing investors to trade the securities even before they are formally issued. Primary Dealers may submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day. The re-issuance of sovereign green bonds highlights that the government's continued commitment to fund green infrastructure and sustainability initiatives, aligning with India's broader environmental and economic goals. (ANI)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store