PSBs Increase Share in Credit Card Spending to 22.2% in December 2025

Public sector banks have lifted their share of credit card spending to 22.2% in December 2025, reflecting stronger utilisation by existing cardholders and expanded reach into salaried customers. 

PSBs Share Rises to 22.2% in December 2025 

Reserve Bank of India data show that the PSB share in credit card spending grew by 4.5% year on year to reach 22.2% in December 2025. Large PSBs contributed most of the increase, with their share climbing to 21.8%. 

Drivers Behind the Growth 

Higher utilisation of the existing card base, especially in mass retail categories, boosted spending. Festive season demand added momentum, while outreach into tier‑2 and tier‑3 cities expanded the salaried customer segment. Per‑card spending for PSBs rose 27% to ₹16,500. 

Comparison with Private Sector Banks 

Private sector banks saw their share fall by 3.75% to 72.5% in the same period. Average spending per private bank card declined 6% to ₹18,072, reflecting rapid expansion of the card base and lower utilisation among newer customers. 

Read More: Goldman Sachs Invests $500 Million to Scale Up India Banking Operations! 

Impact of UPI Linked RuPay Cards 

The regulator’s decision in late 2022 to allow RuPay credit cards on the UPI network has accelerated growth. RuPay credit cards now account for about 16% of the market, up from 3% two years earlier.  

UPI-linked credit card transactions represent roughly 40% of transaction volume and 8% of value, with strong growth observed in department stores, groceries, utilities, fuel, apparel, and restaurants. 

Online and Offline Transaction Trends 

Ecommerce credit card transactions grew 9.8% year on year, with PSBs posting a 50.5% surge compared with 2.3% for private lenders. Offline transactions rose 16.6% for PSBs versus 5.4% for private banks. 

Conclusion 

PSBs have increased their credit card spending share to 22.2% in December 2025, driven by higher card utilisation, festive demand and the adoption of UPI linked RuPay cards. Private sector banks experienced a decline in share and average spend per card during the same period. 

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