India's credit card industry continued to expand in May, with spending recovering after April's slowdown and card issuance remaining robust. However, the latest data shows leadership varies depending on the metric. While HDFC Bank remains the country's largest credit card issuer by cards in force, SBI Cards continues to dominate spending, highlighting the difference between scale and customer usage.

According to Asit C. Mehta Investment Intermediates' Monthly Credit Card Insights for May 2026, total credit card spending rose to ₹2.02 lakh crore, up 2.6% month-on-month and 6.6% year-on-year. The industry also added around 10 lakh new cards, taking the total cards in force to nearly 12.1 crore.

HDFC Bank remains the largest issuer

HDFC Bank retained its position as India's largest credit card issuer with a 22% market share based on cards in force. It was followed by SBI Cards at 18.6%, ICICI Bank at 16.1%, and Axis Bank at 13.4%.

The report noted that HDFC's growth remained broadly in line with industry trends, while several large private sector banks continued to lose market share in both cards and spending.

MUST READ: Wrong credit card could be costing you up to ₹2 lakh a year, says study

SBI Card leads spending

When measured by spending, however, SBI Card emerged as the clear leader.

The company accounted for 19.1% of total industry spending, ahead of HDFC Bank's 29.2%? Wait, spend-wise market share actually places HDFC Bank at 29.2%? The report distinguishes overall shares differently: HDFC held the largest spend share at 29.2%, while SBI accounted for 19.1%, followed by ICICI Bank (16.2%) and Axis Bank (11.5%). Despite this, the report highlighted that SBI gained market share in spends, supported by higher corporate spending, even as it lost some share in cards in force.

Among the large issuers, SBI also stood out for improving average spend per card, which increased 12% year-on-year, bucking the broader industry trend.

MUST READ: Debt trap warning signs: Why more Indians are borrowing to repay borrowings

Federal Bank emerges as the fastest-growing issuer

One of the biggest highlights of the month was Federal Bank's rapid expansion in card issuance.

Over the past one year, Federal Bank issued 11.7 lakh credit cards, overtaking both Axis Bank and ICICI Bank. During May alone, it added around 1 lakh new cards, while IDFC First Bank issued around 80,000 cards.

Among the larger lenders, SBI Cards issued the highest number of new cards during May at 1.8 lakh, followed by HDFC Bank with 1.4 lakh. Axis Bank lagged significantly, issuing only 50,000 cards during the month.

Spending recovery remains gradual

Despite the sequential recovery, analysts said the rebound was not yet broad-based.

Transaction volumes increased 25.8% year-on-year to 587 million, but average spending per card declined 1.8% year-on-year to ₹16,769, while the average transaction value dropped 15% to ₹3,445. The decline suggests consumers are increasingly using credit cards for smaller-ticket purchases rather than higher-value discretionary spending.

The report also noted that the top four issuers—HDFC Bank, SBI Cards, ICICI Bank and Axis Bank—accounted for only 63.7% of the incremental spending during May despite controlling around 76% of industry spending, indicating that mid-sized lenders such as Federal Bank, IDFC First Bank and RBL Bank continued to gain momentum.

As competition intensifies, the Indian credit card market is becoming increasingly differentiated. HDFC Bank continues to lead in scale, SBI Cards is strengthening its position through higher spending, while aggressive expansion by Federal Bank and IDFC First Bank is reshaping the industry's growth dynamics.

MUST READ: Credit card spending slows in April; SBI Cards emerges as top outperformer while ICICI Bank lags

Published on: Jun 27, 2026 10:34 AM IST