As of April 29, 2026, PSU Banks have rapidly increased their share in credit card spending by 17%, marking a notable shift in the Indian banking landscape. This surge comes amidst a broader growth trend in the credit card market, which has now surpassed 119 million active cards.
Historically, HDFC Bank and SBI Cards have dominated the credit card sector, with HDFC Bank holding a market share of 22.2% in terms of card numbers and an even larger share of 29.8% in transaction value. Meanwhile, SBI Cards accounts for approximately 18.7% of total cards issued.
Recent data indicates that PSU Banks have seen their overall spending increase significantly over the past year, with their average spending per card reaching ₹16,847. This represents a substantial uptick compared to private banks, which experienced a decrease in average spending to ₹18,948—a drop of around 4%.
Moreover, PSU Banks now command a remarkable 72.6% of total card spending within the market. This growth is attributed to various strategies implemented to attract new customers, signaling a concerted effort to enhance their competitive edge against private banks.
In comparison, while private banks still hold approximately 80% of active cards, the recent trends suggest that PSU Banks are effectively narrowing this gap. The overall credit card base has grown by about 8% compared to last year, showcasing an expanding consumer base and increasing reliance on credit facilities.
The implications of these developments are significant for both consumers and financial institutions alike. As PSU Banks continue to innovate and attract clientele through competitive offerings, the dynamics of the credit card market may experience further shifts.
