Credit card boom accompanied by delinquencies, borrower stress; CIBIL
India is experiencing a significant credit card boom, with a substantial increase in new customers and card issuance. However, this growth is accompanied by rising delinquencies and increasing borrower stress, particularly among 'new to credit' users and those holding multiple cards. CIBIL data indicates a surge in credit card balances and a growing share of non-performing assets, signaling potential risks for the banking sector. The trend highlights the need for cautious lending practices and robust risk management to ensure sustainable growth in the credit card segment and prevent widespread financial distress.
Key Points
- India is witnessing a credit card boom, marked by a surge in new customers and card issuance.
- This growth is accompanied by rising delinquencies and increasing borrower stress, especially among 'new to credit' users.
- CIBIL data shows a significant increase in credit card balances and non-performing assets.
- The trend signals potential risks for the banking sector, necessitating cautious lending practices.
- Borrowers with multiple cards are showing higher delinquency rates, indicating over-leveraging.
Exam Facts
- CIBIL (Credit Information Bureau (India) Limited) reported the trends.
- 144 lakh new credit card customers were added in the last year.
- 1.5 crore new credit cards were issued in the last year.
- Credit card balances increased by 10% in 2025-26.
- Non-performing assets (NPAs) in credit cards increased by 3% in 2025-26.
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