Established Lenders Dominate Credit Card Expenditures
The landscape of credit card spending in India is undergoing significant consolidation, with HDFC Bank and the State Bank of India (SBI) nearing control of nearly half of the total transaction value. By January 2026, the top five credit card issuers have expanded their market dominance to 85.6%, reflecting a notable shift towards established banks for high-value transactions. This trend highlights the increasing competition faced by smaller banks and fintech companies, which now account for less than 15% of the industry’s spending.
Market Share Dynamics
The latest data reveals a marked increase in the market share of the leading banks in the credit card sector. As of January 2026, HDFC Bank, the current market leader, has increased its share of transaction value from 28% in April 2025 to 28.4%. SBI has shown remarkable growth, expanding its share from 19.3% to 24.7% during the same period. This shift indicates that these two banks have collectively absorbed over five percentage points of market share from their competitors, particularly impacting ICICI Bank and Axis Bank, which have seen declines. Meanwhile, Kotak Mahindra Bank has managed to retain its fifth position with a slight increase in market share from 3.3% to 3.5%.
The dominance of HDFC Bank and SBI is further underscored by the decline in market share of foreign banks, which has dropped from 5% to 4.5%. The exit of Citi from the credit card business exemplifies the challenges faced by foreign banks in this competitive landscape. Additionally, smaller banks that have partnered with fintechs and non-banking financial companies (NBFCs) are encountering regulatory hurdles that limit their growth potential.
Credit Card Issuance and Consumer Behavior
Despite the increasing concentration of spending among the top banks, the overall distribution of credit cards remains relatively stable. The top five banks accounted for 75.2% of active credit cards in April 2025, which slightly decreased to 74.7% by January 2026. This discrepancy between card issuance and spending suggests that while smaller lenders are expanding their card offerings, consumers are increasingly relying on cards from larger banks for significant purchases. High-value transactions, particularly in sectors like travel, lifestyle, and e-commerce, are predominantly made using cards from these leading banks.
The data from January 2026 further illustrates this trend, even as total credit card spending experienced a decline following the festive season. The overall industry spending fell by 2.7% month-on-month, dropping to nearly Rs 2 lakh crore from close to Rs 2.5 lakh crore in December. Online spending, although down by 2.5% to Rs 1.23 lakh crore, still maintained a dominant 61.8% share of transaction value. In contrast, point-of-sale spending saw a sharper decline of 3.2%, indicating a reduction in offline discretionary consumption.
Performance of HDFC Bank and SBI
Even amidst a shrinking total spending landscape, HDFC Bank and SBI have managed to increase their combined market share. Their joint transaction value decreased from Rs 97,127 crore in December to Rs 94,544 crore in January, but this contraction was less severe than the overall industry decline. Consequently, their combined market share rose slightly from 47.4% to 47.5%. In January alone, HDFC Bank recorded credit card payments amounting to Rs 56,518 crore, while SBI reported Rs 38,026 crore, showcasing their near-majority control over industry spending.
The consolidation trend is also evident in transaction volumes, with HDFC Bank and SBI accounting for 43.9% of total credit card transactions in January. This growing dominance of the top banks highlights the shifting dynamics in the credit card market, where established players are increasingly favored by consumers for their reliability and service offerings. As the competition intensifies, smaller banks and fintechs will need to innovate and adapt to retain their foothold in this evolving landscape.
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