SBI Cards & Payment Services

Margins improve, credit cost remain high

SBI Cards and Payment Services has posted 6% decline in net profit at Rs 555.96 crore in the quarter ended June 2025 (Q4FY2025). The income from operations increased 12% to Rs 4876.92 crore for Q1FY2026, while other income of the company jumped 28% to Rs 158.47 crore. The total income increased 12% to Rs 5035.39 crore for Q1FY2026. Interest expenses increased 6% to Rs 812.82 crore.

Operating expenses increased 18% to Rs 2087.63 crore, allowing the operating profits to improve 10% at Rs 2134.94 crore. The cost-to-income ratio was steady at 49.4% in Q1FY2026 from 47.5% in Q1FY2025.

Depreciation declined 29% to Rs 35.03 crore, while provisions increased 23% to Rs 1351.55 crore. Profit before tax fell 6% yoy basis at Rs 748.36 crore.

Effective tax rate increased to 25.7% in Q1FY2026 from 25.6% in Q1FY2025. Net Profit of the company, after share in profit of associates and non-controlling interest, fell 6% to Rs 555.96 crore for Q1FY2026.

Book value of the company stood at Rs 150.7 per share, while the adjusted book value net of NNPA stood at Rs 142.3 end June 2025.

Business highlights

Cards-in-force grew by 10% YoY at 2.12 crore as of Q1FY26 against 1.92 crore as of Q1FY25. New accounts volume was at 873K in Q1FY26 against 904K new accounts in Q1FY25

Spends grew by 21% YoY at Rs 93244 crore in Q1FY26 against Rs 77129 crore in Q1FY25

Receivables grew by 7% YoY at Rs 56607 crore in Q1FY26 against Rs 52705 crore in Q1FY25.

Market share for Q1FY26 Card-in-force is at 19.1 % (Q1FY25: 18.5%), Spends is at 16.6% (Q1FY25: 15.9%), The company remained number 2 for Cards-in-force and number 3 for spends, in industry

NIM of the company improved 3 bps qoq and 28 bps yoy to 11.2% in Q1FY2026, driven by 38 bps yoy decline in cost of funds to 7.1%

Total Balance Sheet size rose to Rs 66009 crore at end June 2025 as against Rs 65546 crore at end March 2025

Net worth at end June 2025 has been Rs 14413 crore as against Rs 13853 crore at end March 2025

Asset Quality

The Gross non-performing assets were at 3.07% of gross advances at end June 2025, as against 3.06% at end June 2024. Net non-performing assets were at 1.42% at end June 2025, as against 1.11 % at end June 2024.

Company`s CRAR was 23.2% compared to 20.6% at end June 2024. The Tier I capital in respect of an NBFC-ND-SI, at any point of time, can`t be less than 10%. Company`s Tier I capital was 17.9% at end June 2025, compared to 16.8% at end June 2024.

ROAA at 3.4% in Q1FY26 against 4.1% in Q1FY25. ROAE at 15.8% in Q1FY26 against 19.1% in Q1FY25

Financial Performance FY2025

The income from operations increased 7% to Rs 18072.22 crore for FY2025, while other income of the company jumped 10% to Rs 564.93 crore. The total income increased 7% to Rs 18637.15 crore for FY2025. Interest expenses increased 22% to Rs 3178.40 crore. Operating expenses declined 4% to Rs 7859.74 crore, allowing the operating profits to improve 13% at Rs 7599.01 crore. The cost-to-income ratio improved to 50.8% in FY2025 from 54.9% in FY2024. Depreciation declined -25% to Rs 146.82 crore, while provisions jumped 48% to Rs 4871.51 crore. Profit before tax declined 20% yoy basis at Rs 2580.68 crore. Effective tax rate increased to 25.7% in FY2025 from 25.5% in FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, declined 20% to Rs 1916.41 crore for FY2025.

SBI Cards and Payment Services : Results
	2506 (3)	2406 (3)	Var %	2503 (12)	2403 (12)	Var %
Income from operations	4876.92	4358.64	12	18072.22	16968.42	7
Other Income	158.47	123.95	28	564.93	515.08	10
Total Income	5035.39	4482.59	12	18637.15	17483.50	7
Interest Expenses	812.82	766.83	6	3178.40	2595.22	22
Other expenses	2087.63	1766.59	18	7859.74	8172.31	-4
Gross profit	2134.94	1949.17	10	7599.01	6715.97	13
Depreciation	35.03	49.37	-29	146.82	196.75	-25
Profit before tax and Provisions	2099.91	1899.80	11	7452.19	6519.22	14
Provisions and write off	1351.55	1100.63	23	4871.51	3287.42	48
Profit before tax	748.36	799.17	-6	2580.68	3231.80	-20
Provision for tax	192.40	204.72	-6	664.27	823.92	-19
PAT	555.96	594.45	-6	1916.41	2407.88	-20
EPS (Rs)*	23.4	25.0		20.1	25.3
Equity	951.5	951.1		951.4	951.0
Adj BV (Rs)	142.3	127.2		136.3	121.8
* EPS and Adj BV are calculated on diluted equity as given for each year, Face value of Rs 10, Excluding extraordinary items.
Figures in Rs crore
Source: Capitaline Corporate Database

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