New Delhi, Dec. 23 -- India's credit card industry is witnessing a clear slowdown in growth, with new card issuance declining sharply even as private sector banks continue to consolidate their dominance, according to a recent report by JM Financial Institutional Securities.

The number of new credit cards issued fell to 4.4 million in the second quarter of FY26, a steep 28% year-on-year decline compared with 6.1 million cards issued in the same period last year, the report said.

As a result, growth in cards in circulation remained muted at 6% year-on-year, underscoring a broader moderation in consumer credit expansion.

Outstanding credit card balances also reflected this slowdown. Growth in balances eased to 9% year-on-year in 2QFY26, s...