SBI Cards & Payment Services (SBI Card) a subsidiary of State Bank of India (SBI)–saw its share in credit card spending rise to 17.57 per cent during the April–February period of FY26, up from 15.61 per cent in the corresponding period of FY25, according to data from the Reserve Bank of India (RBI). Higher card issuances and increased customer usage supported the growth.
SBI Card, a listed non-banking financial company (NBFC), handles the credit card business for SBI customers, including issuance and processing. RBI data aggregates SBI Cards’ performance under SBI, resulting in its metrics being reflected within the public sector bank (PSB) segment.
During the period, the overall share of public sector banks in credit card spending rose to 20.30 per cent from 18.37 per cent a year earlier. In contrast, private sector banks’ share declined to 73.43 per cent from 75.63 per cent.
Analysts said the decline in private banks’ share was largely driven by contraction among small and mid-sized lenders, while leading private banks broadly maintained their positions. The fall among smaller lenders reflects a more selective approach to card issuance and credit limit enhancements, indicating tighter underwriting and a moderated risk appetite.
The growing adoption of credit cards on UPI has also contributed to a shift in spending patterns, with some traction moving towards PSBs and other lenders offering credit via the platform. Spending through credit on UPI rose to 16 per cent in 2025 from 6 per cent in 2023.
Among major issuers, HDFC Bank saw its share in credit card spending increase to 27.90 per cent from 25.46 per cent. Meanwhile, ICICI Bank’s share declined to 18.02 per cent from 18.97 per cent, and Axis Bank’s share slipped to 11.35 per cent from 11.58 per cent.
“The migration of low-ticket transactions to UPI has affected smaller private banks more than larger lenders. Smaller banks typically cater to mass-market customers who undertake a higher number of small-value transactions. As a result, the credit card portfolios of large banks have remained relatively more resilient,” said Abhinav Thakur, head of data and analytics at Equifax India. He added that PSBs have responded by offering RuPay credit cards compatible with UPI.
In February, credit card spending declined to Rs 1.77 trillion, the lowest level in the current financial year, compared to Rs 2 trillion in January, though higher than Rs 1.67 trillion in February 2025. Point-of-sale transactions stood at Rs 67,435.40 crore, down from Rs 75,987.83 crore in the previous month, while e-commerce spending fell to Rs 1.097 trillion from Rs 1.23 trillion.
SBI’s credit card base rose 6.34 per cent year-on-year (YoY) to 21.97 million in February 2026. The number of credit cards outstanding with PSBs increased 7.19 per cent YoY to 28.03 million, while private sector banks saw an 8.17 per cent rise to 83.69 million. Overall, credit cards outstanding in the system grew 7.67 per cent YoY to 117.7 million.
Among large lenders, HDFC Bank’s card base grew 11.16 per cent YoY to 26.26 million, ICICI Bank’s rose 4.43 per cent to 18.91 million, and Axis Bank’s increased about 7.6 per cent to 15.89 million.
“The sequential decline in card spending in February is largely seasonal, in line with trends seen in previous years. This is due to fewer calendar days, increased focus on tax planning, and the absence of major festive or travel-related spending triggers,” said Sachin Sachdeva, vice president and sector head, financial sector ratings, ICRA.
The total number of credit cards outstanding stood at 117.7 million in February, up from 116.65 million in January and 109.31 million a year earlier.
