Quarterly Financial Results
SBI Card Reports 20% Growth in Q1 FY27 Profit as Credit Costs Decline and Customer Acquisition Remains Strong
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- SBI Cards and Payment Services Limited reported a healthy start to FY27 with Profit After Tax (PAT) rising 20% YoY to ₹664 crore, supported by improving asset quality, lower impairment expenses and continued business expansion.
- The company added over 10.23 lakh new credit card accounts during the quarter, while cards-in-force increased to 2.26 crore and spending volumes grew 27% year-on-year.
PRICE-SENSITIVE TRIGGER
Event: SBI Cards and Payment Services Limited announced its financial results for the quarter ended 30 June 2026, approved by the Board of Directors.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: Higher profitability, improving credit quality and sustained customer acquisition strengthened the company’s operating performance despite modest revenue growth.
Metrics:
Key Financial Metrics:
- Total Income: ₹5,205 crore (▲3% YoY)
- Revenue from Operations: ₹5,041 crore (▲3% YoY | ▲2% QoQ)
- Interest Income: ₹2,421 crore (▼3% YoY)
- Fee & Other Income: ₹2,620 crore (▲10% YoY)
- Finance Cost: ₹745 crore (▼8% YoY)
- Operating Expenses: ₹2,620 crore (▲23% YoY)
- Earnings Before Credit Costs: ₹1,841 crore (▼12% YoY)
- Impairment Losses & Bad Debts: ₹948 crore (▼30% YoY)
- Profit Before Tax: ₹893 crore (▲19% YoY | ▲9% QoQ)
- Profit After Tax: ₹664 crore (▲20% YoY | ▲9% QoQ)
- ROAA:Â 3.9% (vs 3.4% YoY)
- ROAE:Â 16.5% (vs 15.8% YoY)
- Capital Adequacy Ratio:Â 25.6%
- Tier-I Capital Ratio:Â 20.3%
Highlight:
- Lower credit costs and improved asset quality enabled SBI Card to deliver 20% year-on-year profit growth while maintaining healthy business expansion and strong capital adequacy.
What Happened ?
SBI Card delivered a strong first quarter of FY27 with stable revenue growth and a notable improvement in profitability. The company continued to expand its customer base by adding more than one million new accounts, while spending volumes and receivables registered healthy growth.
The improvement in earnings was primarily driven by a sharp decline in impairment losses and better credit quality, reflecting disciplined portfolio management. The company also maintained a strong capital position with a Capital Adequacy Ratio of 25.6%, providing adequate capacity to support future growth.Â
key details
Business Performance & Asset Quality:
- Cards-in-force increased 7% YoY to 2.26 crore.
- New account acquisitions rose to 10.23 lakh, compared with 8.73 lakh in Q1 FY26.
- Customer spending increased 27% YoY to ₹1,18,475 crore.
- Credit card receivables grew 3% YoY to ₹58,269 crore.
- SBI Card retained the No. 2 position in the industry for cards-in-force, spending and transaction volumes.
- Gross NPA improved to 2.04% from 3.07% a year ago.
- Net NPA declined to 0.83% from 1.42% in the corresponding quarter last year.
- Total balance sheet size increased to ₹69,707 crore, while net worth rose to ₹16,463 crore as of 30 June 2026.
- The company maintained the highest domestic credit ratings of AAA/Stable (long-term) and A1+ (short-term) from both CRISIL and ICRA.
Note:
- The quarter demonstrates SBI Card’s continued focus on balancing customer acquisition with disciplined credit underwriting.
- Lower impairment charges and improving asset quality contributed significantly to earnings growth despite moderate revenue expansion.Â
Risk Analysis
Summary:
- SBI Card continues to benefit from improving portfolio quality; however, future performance remains linked to consumer spending trends, competitive intensity in the credit card market and the sustainability of asset quality improvements.
Key Risks:
- Interest income declined marginally during the quarter.
- Operating expenses increased as the company continued investing in business expansion.
- Growth in receivables remained moderate compared with spending growth.
- Future profitability will depend on maintaining low credit costs and stable asset quality.
- Competitive pressure within the credit card industry could influence future customer acquisition costs.Â
Worst Case:
- If credit quality weakens or impairment expenses begin rising again, profitability could come under pressure despite continued growth in spending volumes and customer acquisition.
Risk Level: Medium
Company Commentary
- The Board of Directors approved the financial results for the quarter ended 30 June 2026.
- Profit After Tax increased to ₹664 crore, supported by lower impairment expenses.
- The company added more than 10 lakh new accounts during the quarter.
- Cards-in-force reached 2.26 crore, while spending volumes grew 27% YoY.
- SBI Card maintained strong capital adequacy and continued to hold the highest domestic credit ratings from CRISIL and ICRA.
Official Exchange Filing: SBI Cards and Payment Services Limited
