Lower credit costs may drive more gains for SBI Card

Data from the credit card market indicates an uptick through AugustOctober, 2025 over the year-ago period.

- DEVANGSHU DATTA

Year-on-year operating expenses growth (%)

In October, spends improved by 6.2 per cent year-on-year (Y-0-Y) but fell month-on-month (Mo-M) by 1.1 per cent after a surge in post-GST-cut spending in September.

The average spend per card in October was at ₹18,841, down 2 per cent Mo-M and 1 percent Yo-Y. Credit limit between ₹25,000 and ₹2 Lakh constitutes over 50 per cent of the market, holding the highest share of credit limits and outstanding balances. The rise in credit card spending through this period may be attributed to increasing consumer demand led by rising income, deeper and wider card penetration, rapid digital expansion, and overall economic momentum. The growth was primarily led by private sector banks, reflecting their dominance. There's a huge gap in per-card spends with private banks registering over 30 per cent higher spending compared to public sector banks (PSBs).