Why Credit Card Growth Slowed Down in June 2025 – Key Reasons & Market Impact

The Indian credit card industry has been a growth engine for the banking sector in recent years. However, June 2025 brought a significant shift in this trajectory as new credit card issuances saw a notable slowdown. In this blog, we dive deep into the reasons behind this trend, the banks most affected, and what this means for customers and the overall market.

What Happened in June 2025?

Industry reports indicate that new credit card issuances by leading banks like HDFC Bank, ICICI Bank, and SBI Card fell sharply in June compared to previous months. This comes after a period of strong growth earlier in the year, raising questions about whether the market is reaching saturation or if other factors are at play.

Key Reasons Behind the Slowdown

Stricter Risk Assessment: Banks have tightened their credit screening processes due to concerns over rising defaults. Economic Uncertainty: Inflationary pressures and global market volatility are impacting consumer spending patterns. RBI Guidelines: The Reserve Bank of India’s push for prudent lending has made banks more cautious about aggressive expansion. Fintech Competition: Digital-first fintech players are attracting customers with faster onboarding and better rewards, taking away some of the market share.

Impact on Leading Banks

HDFC Bank, the largest credit card issuer in India, reported slower growth in new cards. SBI Card and ICICI Bank also experienced a dip. This indicates a broader industry trend rather than an isolated issue.

What Does This Mean for Customers ?

While the slowdown might limit the number of offers in the short term, it could lead to better quality products and improved customer service as banks prioritize existing clients over aggressive acquisition.

The Road Ahead