The sequential decline in spending followed the unwinding of festival-led purchases and promotional campaigns that had boosted October volumes.
CareEdge noted that the slowdown did not indicate weaker usage, but rather a cooling in transaction values as consumers shifted smaller payments to UPI and banks promoted EMI conversions for larger purchases.
Penetration, not ticket size, drives growth
The expansion in spending was supported by a growing card base, which increased to 11.5 crore outstanding cards in November from 10.7 crore a year earlier.
CareEdge highlighted that usage growth stems from wider adoption rather than higher spending per card, indicating a maturing credit card market.
Per-card spending declined sequentially but remained higher than last year, signalling that cards are being used more consistently across everyday categories rather than for episodic discretionary splurges.
Public banks gain share as private lenders turn selective
Private sector banks retained dominance with nearly three-fourths of total spending but ceded market share as tighter underwriting and delinquency concerns slowed incremental issuance. In contrast, public sector banks increased their share by expanding issuance in mass and co-branded segments and leveraging stronger reach beyond large urban centres.
CareEdge observed that PSBs benefited from improved digital engagement, which translated into higher utilisation among newer cardholders, even though their overall spending share remained well below that of private lenders.
Market concentration remains high
Spending continues to be concentrated among a limited set of large issuers.
According to CareEdge, a small group of leading private and public sector banks accounted for around 80% of total spending, reflecting the advantages of scale, established merchant networks, and stronger risk controls amid a more cautious credit environment.
Online channels anchor transaction growth
Digital transactions continued to anchor credit card usage, accounting for roughly 60% of total volumes. Growth in online spending outpaced offline channels, reinforcing the structural shift toward e-commerce and app-based payments.
CareEdge noted particularly strong digital traction among public sector banks, suggesting narrowing gaps in customer engagement and platform capabilities.
Credit growth slows as regulation reshapes portfolios
Outstanding credit card balances rose marginally in absolute terms but declined as a share of total retail loans. CareEdge attributed this to tighter regulatory norms on unsecured lending and faster growth in secured retail products, which have prompted banks to recalibrate portfolio risk.
Outstanding balances are concentrated in mid- and high-limit cards, indicating a shift toward better-quality borrowers rather than rapid balance expansion.
Measured growth ahead
CareEdge expects credit card spending to remain supported by services consumption, digital commerce, and gradual non-metro adoption. However, stricter underwriting, selective promotions, and regulatory scrutiny are likely to restrain aggressive growth and push lenders toward more stable, risk-adjusted expansion.
