Credit Card Issuance Slows in FY26 Amid Broader Consumption Credit Recovery: JM Financial

• Credit card issuance slowed significantly in early FY26, with new additions down 28% YoY in Sep Q, despite a broader recovery in India's consumption credit market.
• JM Financial's report highlights overall consumption credit market recovery (6-35% YoY growth in Sep Q FY26) reversing FY25 weakness, but credit cards remain an outlier.
• Private banks dominate new card issuance (78%), with HDFC Bank and SBI Cards gaining spending market share; asset quality shows mixed signals with rising stress in PAR 31-90.
• Personal loans (up 35% in Sep Q) and consumer durable loans (up 19% in Sep Q) saw strong rebounds, with PSBs leading personal loan recovery and private banks regaining consumer durable share.
• Lenders are increasingly cautious, reducing new-to-credit borrower share across segments, indicating a focus on seasoned borrowers amid unsecured credit quality concerns.

Why It Matters: Credit card issuance lags broader consumption credit recovery as lenders turn cautious on unsecured loans.