SBI Cards Q1 Results: Net Profit Rises 19.5% to ₹664 Crore as Card Spends Jump 27%

SBI Cards and Payment Services Ltd reported a healthy performance for the first quarter of FY27, supported by robust growth in credit card spending, improved asset quality, and lower impairment charges. The country's second-largest credit card issuer posted a double-digit rise in profit despite flat net interest income, highlighting the benefits of stronger fee income and disciplined risk management.

The company also continued to expand its customer base, with over one million new card accounts added during the quarter.

Profit Growth Driven by Lower Credit Costs

For the quarter ended June 30, 2026, SBI Cards reported a 19.5% year-on-year (YoY) increase in net profit to ₹664.4 crore, compared with ₹556 crore in the corresponding quarter last year.

Total revenue rose 3% YoY to ₹5,205 crore, while net interest income (NII) remained largely unchanged at ₹1,676 crore.

A key contributor to earnings was the sharp decline in credit costs. Impairment losses and bad debt expenses fell 30% YoY to ₹948 crore, helping offset a 12% decline in earnings before credit costs.

The company's profitability also improved, with Return on Average Assets (ROAA) increasing to 3.9% from 3.4%, while Return on Average Equity (ROAE) rose to 16.5% from 15.8%.

Card Spends and Customer Base Continue to Expand

SBI Cards witnessed strong business momentum during the quarter. Cards-in-force grew 7% YoY to 2.26 crore, while the company added 1.02 million new accounts, up from 873,000 in the year-ago period.

Credit card spending surged 27% YoY to ₹1.18 lakh crore, reflecting healthy consumer demand and increased transaction activity. Credit card receivables also rose to ₹58,269 crore.

The company retained its position as the second-largest credit card issuer in India in terms of cards-in-force, spends, and transaction volumes. While its market share in cards-in-force eased slightly to 18.6%, its share of industry spending improved significantly to 19.5%.

Asset Quality Shows Improvement

SBI Cards reported better asset quality during the quarter. Gross Non-Performing Assets (GNPA) declined to 2.04% from 3.07% a year earlier, while Net NPA improved to 0.83% from 1.42%.

The company also maintained a strong capital position, with a Capital Adequacy Ratio of 25.6%, providing sufficient room to support future growth.

Conclusion

SBI Cards delivered a resilient start to FY27, with higher card spends, improving asset quality, and lower provisioning driving profit growth. Although net interest income remained stable, the company's expanding customer base and stronger fee income indicate sustained business momentum. Investors will closely monitor whether spending growth and improving credit metrics continue to support earnings in the coming quarters.

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