“Overseas banks witnessed a contraction in excellent playing cards, reflecting their comparatively cautious enlargement technique and continued deal with premium buyer segments,” stated Saurabh Bhalerao, affiliate director at CARE Scores.
Knowledge launched by the Reserve Financial institution of India (RBI) reveals that a number of international lenders noticed a decline of their lively card base in 2025, at the same time as the general bank card market continued to develop quickly, pushed largely by personal sector banks.
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Amongst main international issuers, American Categorical noticed its lively playing cards decline to 1.334 million in January 2026 from 1.453 million a yr earlier, a drop of 118,000 playing cards.
Normal Chartered Financial institution reported an excellent sharper contraction, with its card base falling to 669,000 from 904,000, a decline of 234,000 playing cards year-on-year.
DBS Financial institution India additionally noticed a steep discount, with lively playing cards dropping to 325,000 from 494,000, down 169,000 playing cards in the course of the interval.
Just a few international lenders managed to broaden their portfolio. HSBC elevated its lively playing cards to 960,000 in January 2026 from 843,000 a yr in the past, including 117,000 playing cards, whereas SBM Financial institution India grew its card base to 804,000 from 711,000, a rise of 92,629 playing cards.
The erosion in card numbers additionally means a shrink within the share of spending.
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Based on CareEdge calculations based mostly on Reserve Financial institution of India knowledge, the share of international banks in complete bank card spending declined to 4.6% in January 2026 from 5.2% a yr in the past, a 63 foundation level year-on-year drop. Their share progressively tapered by means of the year-from 5.0% in March 2025 to 4.7% in November 2025, earlier than easing additional to 4.6% in December 2025, the place it remained unchanged in January 2026.
“The development highlights the structural shift in India’s bank card market, the place massive home issuers have strengthened their dominance,” stated Prakash Agarwal, companion at Gefion Capital.
“The highest 5 card issuers now account for greater than 80% of total bank card spending, underscoring the rising focus of the market and the rising problem for international lenders that largely cater to area of interest, premium buyer segments moderately than pursuing mass-market enlargement.”
