India’s credit card spending surged by 24 per cent in March, month-on-month, to INR 2,194 billion, supported by seasonal factors
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NEW DELHI — India’s credit card spending surged by 24 per cent in March, month-on-month, to INR 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 per cent.
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 per cent 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 per cent 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 per cent month-on-month, reflecting seasonal momentum, but remained largely flat on a year-on-year basis, increasing just 0.9 per cent.
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 per cent year-on-year in February. However, on a month-on-month basis, it eased to INR 1,772 billion, a moderation of 11 per cent. In the month, card issuance came at 1.05 million new cards, up 7.7 per cent year-on-year.