India credit card spending jumps 24 pc to Rs 2,194 bn

India’s credit card spending surged by 24% in March, month-on-month, to Rs 2,194 billion, supported by seasonal factors and a low base, even as underlying trends indicated a normalisation in consumption growth, according to a report released on Tuesday.
According to an analysis by Asit C. Mehta Investment Intermediates, on a year-on-year basis, growth was more moderate at 8.9%.
The report noted that the sharp monthly uptick does not indicate a structural acceleration in demand but rather reflects seasonal spending patterns and statistical base effects, as the sector transitions from a high-growth phase to a more normalised trajectory.
On the cards and usage front, the total number of credit cards in force rose around 8% year-on-year to approximately 118 million, indicating steady expansion of the user base.
Meanwhile, new card issuance also remained healthy, with about 0.93 million cards issued in March, up 7.96% year-on-year, suggesting that growth continues to be driven more by customer acquisition than by a sharp rise in spending per user.
However, spending behaviour showed mixed signals.
Average spend per card rose 22.8% month-on-month, reflecting seasonal momentum, but remained largely flat on a year-on-year basis, increasing just 0.9% .
Similarly, average spend per transaction rose on a monthly basis but continued to show a declining trend on a year-on-year basis, indicating limited improvement in consumption intensity.
Earlier, another report highlighted that credit card spending in India grew 6% year-on-year in February. However, on a month-on-month basis, it eased to Rs 1,772 billion, a moderation of 11%. In the month, card issuance came at 1.05 million new cards, up 7.7% year-on-year