Core Insights - Consumer spending growth has moderated to nearly 6% year-on-year in February 2026, down from 8.1% a year earlier, indicating a gradual normalization in spending patterns [1][8] - The industry is experiencing a trend of lower growth rates, with spending growth stabilizing in the mid-to-high single digit range [2][8] Spending and Transaction Volumes - Credit card spending fell nearly 11% month-on-month to ₹1.78 lakh crore in February 2026 from ₹1.99 lakh crore in January, but year-on-year spending rose nearly 6% from ₹1.68 lakh crore in February 2025 [1][8] - Transaction volumes decreased by 8.6% sequentially after a flat trend in January, although they grew 24% year-on-year, suggesting a moderation in usage intensity despite strong card additions [8] Credit Card Issuance - A net addition of 1.05 million credit cards in February 2026 marked a six-month high and a 21% increase from the 868,000 cards added in January, bringing the total to 117.7 million [5][8] - Axis Bank led the card additions with 155,000 new cards, followed by HDFC Bank with 151,000 and ICICI Bank with 140,000, indicating intense competition among major issuers [6][8] Industry Trends - The divergence between increasing card additions and weaker transaction volumes suggests a shift towards calibrated growth, with issuers focusing on portfolio expansion while managing risk [2][8] - Recent industry developments, such as reward rationalization and the adoption of spend-linked benefits, indicate a focus on profitability and cost optimization [2][8] - Spending growth is expected to remain moderate, supported by services consumption and the expansion of digital commerce, although it may be tempered by a cautious credit environment and tighter underwriting standards [8]