Public Sector Undertaking (PSU) Banks have seen a 17% increase in credit card spending, significantly enhancing their market share within India’s growing credit card sector.
As of April 2026, the total number of active credit cards in India has surpassed 119 million. This growth reflects a broader trend towards increasing reliance on credit facilities among consumers.
Leading the market are HDFC Bank and SBI Cards, which together dominate the landscape. HDFC Bank holds a substantial 22.2% market share in terms of total cards issued, while SBI Cards accounts for 18.7%.
The rise in PSU Banks’ spending is noteworthy. Their average spending per card has reached ₹16,847, marking a significant increase compared to the previous year. This contrasts with private banks, which have experienced a 4% decrease in average spending, now standing at ₹18,948.
A deeper look reveals that PSU Banks account for 72.6% of total card spending in the country. This figure underscores their growing influence amidst stiff competition from private banks.
The credit card base has also expanded by 8%, indicating a robust demand for credit facilities among consumers. This expansion is crucial for banks as it directly correlates with their revenue generation capabilities.
To attract new customers, PSU Banks have implemented various initiatives aimed at enhancing user experience and increasing accessibility to credit products.
The competitive landscape is evolving rapidly. While private banks still hold around 80% of active cards, the increasing trend of PSU Banks gaining market share could reshape customer preferences in the coming years.
This shift is critical as it reflects changing consumer behavior and the banking sector’s adaptation to meet these demands more effectively.
The future will likely see continued growth in the credit card sector as both PSU and private banks innovate to capture a larger share of this lucrative market.
