The industry added 1 million new cards during May, marking the second-highest monthly card issuance in the past 27 months. Total cards in force increased to 120.5 million, while YoY growth accelerated to 8.7 per cent, the highest recorded in the past 15 months.

Transaction volumes stood at 587 million, increasing 5.7 per cent sequentially and 25.8 per cent on an annual basis. The sequential recovery was largely attributable to the sharp decline witnessed in April.

Average spend per card eased 1.8 per cent YoY and increased by 1.7 per cent sequentially. SBI was the clear exception, with per-card spend up 12 per cent YoY, lifted by higher corporate spending.

Average spend per transaction declined on both measures, down 3 per cent MoM and 15 per cent YoY, continuing its downward trajectory due to increase in low value transactions.

The top four banks accounted for only 63.7 per cent of the incremental spending during the month despite holding an industry market share of roughly 76 per cent in spends, the report noted.

Among the top four banks, all broadly matched the industry’s sequential growth except HDFC Bank, which grew by 4.2 per cent.

Another report has said that credit sourcing of new loans in Q3 FY26 grew 36 per cent YoY compared to 7 per cent a year earlier, driven by sustained demand from consumers and businesses.

The report highlighted strong growth in lending activity, led by accelerated sourcing growth, rising secured lending, and improving asset quality.