“Improving net card additions continue to underscore a pick-up in sourcing with an improving risk appetite at issuers,” analysts at JPMorgan wrote in a report released on Wednesday.
Credit card spending in India averaged over ₹2 lakh crore a month between January and July, according to the latest data from the Reserve Bank of India (RBI). New card additions also remained strong, with over a million new cards issued each month since May. The number stood at 1.27 million in July.
Industry-wide credit card spending grew 7.1% year-on-year in July, moderating from 10% growth recorded in June 2026. However, card volume growth improved to 9% year-on-year from 8.4% in the previous month, indicating continued customer engagement despite softer spending trends.
What does this trend mean for the shareholders of SBI Cards?
SBI Cards continued to deliver robust spending growth. Its users spent 22% more year-on-year in July, slower than the 34% growth reported in June. SBI Cards’ spending market share declined by 140 basis points month-on-month to 19%.
On the volume front, SBI Cards recorded a steady 7% year-on-year increase in card usage, while its outstanding market share remained stable. The company also reported strong card acquisition momentum, with net additions of 0.18 million cards during the month, a 2.7-fold increase from the same period last year.
Among other key industry players, HDFC Bank saw a month-on-month decline in spending market share, while ICICI Bank and Kotak Mahindra Bank maintained stable shares during the period.
Despite SBI Cards’ strong customer additions and continued spending growth, Jefferies has maintained its ‘Hold’ rating on the stock. The brokerage appears to be taking a cautious stance amid moderating spending growth trends and intensifying competition within the credit card market.
The stock of SBI Cards has lost a quarter of its value since the start of the year.
Read more: Credit card rewards gap: How premium benefits in India often go unclaimed
(Edited by : Sriram Iyer)
