SBI Card Q1 Results: Net Profit Slips 6% To Rs 556 Cr Despite 12% Rise In Income; Asset Quality Stable

On Friday, July 25, SBI Cards and Payment Services Limited released its financial results for the quarter that ended on June 30. Due to higher operating costs, the profit after tax (PAT) dropped 6% YoY to Rs 556 crore from Rs 594 crore reported in the year-ago quarter. The total income of SBI Cards and Payment Services Limited climbed by 12% year on year to Rs 5,035 crore in Q1FY26 from Rs 4,483 crore in Q1FY25.

Profitability deteriorated as earnings before credit expenses jumped 11% YoY to Rs 2,100 crore, while impairment losses & bad debts expenses soared 23% YoY to Rs 1,352 crore. Interest income increased 11% YoY to Rs 2,493 crore, while fee and commission income climbed 13% to Rs 2,384 crore, according to SBI Cards. Higher receivables caused finance costs to rise 6% YoY to Rs 813 crore, while operating expenses jumped 17% YoY to Rs 2,123 crore.

The return on average equity (ROAE) was 15.8% and the return on average assets (ROAA) was 3.4%, both of which were moderate compared to the prior year.

With cards-in-force up 10% YoY to 2.12 crore and spends up 21% YoY to Rs 93,244 crore, SBI Cards solidified its leadership in the market. With a market share of 19.1% and 16.6%, respectively, the company maintained its industry ranking at #2 in cards-in-force and #3 in spends, while receivables climbed 7% YoY to Rs 56,607 crore. However, the number of new accounts established dipped, from 904K in Q1FY25 to 873K new accounts.

The balance sheet size of SBI Cards as of June 30, 2025, was Rs 66,009 crore, up from Rs 65,546 crore during the March 2025 quarter. The company's net worth increased to Rs 14,413 crore as of Q1FY26 from Rs 13,853 crore at the end of FY25, while total gross advances were at Rs 56,607 crore.

With net non-performing assets (NPA) at 1.42% compared to 1.11% in Q1FY25 and gross non-performing assets (NPA) at 3.07% compared to 3.06% in the year-ago quarter, asset quality remained relatively constant. With a Capital Adequacy Ratio (CRAR) of 23.2% and Tier I capital of 17.9% as of June 30, 2025, SBI Cards maintained a strong capital position that was much above RBI's regulatory norms.

The company has maintained its A1+ short-term rating and AAA/Stable long-term rating from CRISIL and ICRA, highlighting its solid credit history and sound financial standing.