Credit card additions hit 1.26 million in September as banks chase festive demand

By: Team India Tracker

Formal credit gives banks transaction histories to assess borrowers more accurately and tailor financial products to their needs

Indian banks added 1.26 million net credit cards in September, the second-highest monthly increase this calendar year, as lenders expanded their portfolios ahead of the festive season. HDFC Bank and Axis Bank led the additions, together accounting for nearly 43 per cent of the total, according to the latest Reserve Bank of India (RBI) data. 

July recorded marginally higher net additions of 1.27 million cards. September’s additions were 5.5 per cent above August’s 1.20 million and nearly 25 per cent higher than the 1.01 million recorded in September 2025. 

The quarterly figures point to a broader pick-up. Banks added 3.72 million net credit cards between July and September, nearly 47 per cent more than the 2.54 million added in the corresponding quarter last year and 26 per cent above the 2.96 million recorded in April-June. The increase suggests lenders stepped up customer acquisition in the run-up to the festive shopping period, when spending on consumer goods, travel and other purchases typically rises. 

The total number of outstanding credit cards reached 125.32 million at the end of September, up 10.4 per cent from 113.51 million a year earlier. However, a larger card base does not necessarily mean higher spending, as the number of cards issued does not show how frequently customers use them or how much they spend. 

HDFC Bank led the industry, adding 280,353 cards in September, more than double the 122,669 added in August. Axis Bank followed with 259,525 cards, nearly eight times its August addition of 32,789. Together, the two lenders added 539,878 cards, underlining their strong contribution to the industry’s expansion. 

SBI Cards added 208,026 cards in September, compared with 193,294 in August. Bank of Baroda added 114,083 cards, while Slice Small Finance Bank and Federal Bank added 89,794 and 81,753 cards, respectively. Additions at ICICI Bank and Kotak Mahindra Bank were relatively muted. 

Credit cards offer banks several sources of income, including fees and interest on balances carried forward by customers. They can also strengthen customer loyalty and encourage the use of other banking products. The festive season provides an opportunity to attract new cardholders as retailers and lenders compete through discounts, cashback offers and other incentives. 

But faster customer acquisition does not automatically translate into higher profits. The gains will depend on whether new customers actively use their cards, whether transaction values rise and whether banks can keep credit losses under control. Aggressive acquisition can prove costly if marketing expenses and incentives rise faster than income. 

Spending levels, outstanding balances, delinquencies and the quality of new borrowers will offer a fuller picture of the market’s health. The September figures show that lenders are widening their reach, led by HDFC Bank and Axis Bank. The lasting test will be whether the new accounts generate sustained spending and sound returns without weakening repayment discipline. 

The shift also has implications for India’s payments landscape. As more consumers gain access to formal credit, banks can build transaction histories that help them assess borrowers and tailor financial products. But access to credit is not the same as financial resilience. The key question is whether wider card ownership helps households manage spending and smooth irregular expenses, or encourages consumption beyond their means. That distinction will matter as unsecured retail lending expands.