ICICI Bank’s Credit Card Book Falls 9.7% as It Exits Unprofitable Segments

ICICI Bank’s credit card book shrank as it dropped unprofitable customer segments, while festive spending patterns also affected the September quarter’s year-on-year comparison, management said.

Key Highlights

• Credit card balances stood at ₹53,091 crore on September 30, 2026.
• The portfolio declined 9.7% annually and 0.2% quarterly.
• ICICI Bank continues to exit unprofitable customer groups.
• Management said card profitability remained healthy. 

ICICI Bank’s credit card portfolio contracted in the July–September quarter of FY27 as the Indian lender continued removing business that failed its profitability requirements. Executive Director Sandeep Batra discussed the strategy after the bank announced its quarterly results on October 17, 2026.

For borrowers, Batra’s comments point to continued customer selection rather than an end to card lending. He said ICICI Bank remained willing to offer cards and higher limits to suitable customers. ICICI Bank continues to prioritise profitable growth in its credit card business while reducing exposure to customer segments that do not meet its profitability requirements. 

Why Did ICICI Bank’s Credit Card Book Decline?

Batra attributed part of the annual decline to festive spending arriving earlier in the corresponding quarter last year. Card balances had built up towards September-end then, affecting the comparison with September 2026.

Alongside that seasonal effect, ICICI Bank continued reviewing small customer groups and exiting those it considered unprofitable. Batra described these as granular micro-segments identified through internal analysis. 

How Much Did The Credit Card Portfolio Shrink?

ICICI Bank’s quarterly movement was much smaller than its annual decline. The reported balances show the change between June and September 2026.

The figures, reported on October 19, 2026, imply a quarterly reduction of ₹115 crore, calculated by subtracting the September balance from June’s balance. That calculation describes outstanding lending, not the number of cards cancelled or purchases made. 

What Does ICICI Bank’s Pullback Mean For Cardholders?

Our reading is that ICICI Bank’s portfolio decline should not be treated as an individual lending decision. A smaller overall book does not establish that every customer’s limit has fallen. For an existing cardholder, the relevant details remain the sanctioned limit and any account-specific communication from ICICI Bank.

ICICI Bank’s card terms state that limits can change under its internal criteria, with customer notification. The bank also allows customers to request higher limits by submitting financial documents. Those account-level decisions are separate from the aggregate quarterly balance. 

What Has Sandeep Batra Said About Profitability?

Batra said card profitability remained healthy and had improved because of lower credit costs. He also said the contraction was not driven by a credit issue. His explanation centred on whether particular customer groups generated profitable business.

ICICI Bank intends to continue acquiring suitable customers through its distribution network and co-branded partnerships. Batra’s comments describe selective expansion: the bank is still seeking card business while withdrawing from relationships that fail its profitability requirements. 

When Did ICICI Bank Begin Discussing This Strategy?

In comments reported on April 22, 2026, Batra had already described the bank’s withdrawal from riskier and unprofitable segments. He acknowledged moderation in card growth while maintaining that profitability remained healthy.

Existing customer relationships and co-branded partnerships were part of ICICI Bank’s approach at that stage too. September’s contraction follows that earlier strategy, rather than marking its first public disclosure. 

Conclusion

ICICI Bank is continuing to offer credit cards while tightening its focus on profitable customer relationships. The September figures show a smaller portfolio, with management attributing the annual decline partly to festive timing. For cardholders, the bank’s individual assessment remains more relevant than the headline portfolio change.

Frequently Asked Questions

1. What Does ICICI Bank’s Credit Card Book Measure?

ICICI Bank’s credit card book refers to outstanding lending on its cards. It is different from transaction spending or the number of cards issued.

2. Is ICICI Bank Stopping New Credit Cards?

Batra said ICICI Bank remained willing to issue cards and provide higher limits to suitable customers. Its strategy involves selective exits from unprofitable groups.

3. Did ICICI Bank Announce This Strategy Only In October 2026?

No. Batra discussed exits from riskier and unprofitable segments in comments reported on April 22, 2026. 

4. Why Was My ICICI Credit Limit Reduced Despite On-Time Payments?

ICICI Bank’s terms allow limit changes based on internal criteria. Repayment history alone does not explain every decision, and the portfolio announcement cannot establish the reason for an individual reduction. 

5. Can ICICI Bank Restore A Reduced Credit Limit?

ICICI Bank allows eligible credit cardholders to request a credit limit increase, subject to the bank’s approval. Customers can check available limit enhancement offers through ICICI Bank’s official digital banking services. Approval depends on the bank’s assessment, and a request does not guarantee restoration of the previous credit limit.