Earnings Review
Higher credit cost, expenses pull down SBI Cards Q1 PAT YOY
This story was originally published at 20:08 IST on 25 July 2025
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--SBI Cards Apr-Jun net profit INR 5.56 bln
--Analysts saw SBI Cards Apr-Jun net profit at INR 5.80 bln
--SBI Cards Apr-Jun net profit INR 5.56 bln vs INR 5.94 bln year ago
--SBI Cards Apr-Jun revenue INR 48.77 bln vs INR 43.59 bln year ago
--SBI Cards Apr-Jun NIM 11.2%, up 3 bps on quarter
--SBI Cards Apr-Jun credit cost 9.6%, up 111 bps on year
--SBI Cards gross NPA ratio 3.07% as on Jun 30 vs 3.08% qtr ago
--SBI Cards net NPA ratio 1.42% as on Jun 30 vs 1.46% qtr ago
--SBI Cards Apr-Jun retail spends INR 824.04 bln, up 15% on year
--SBI Cards Apr-Jun receivables at INR 566.07 bln, up 7% on year
--SBI Cards: Cards-in-force at 21.20 mln as on Jun 30, up 10% on year
--SBI Cards: New accounts acquisition moderated in Apr-Jun
By Siddhi Chauhan
MUMBAI – Sharply higher expenses and credit costs pulled down SBI Cards and Payments Services Ltd.'s net profit on year in the quarter ended June. The credit card company's net profit declined year-on-year for the fourth consecutive quarter in Apr-Jun despite a rise in its total income.
The net profit for the quarter ended June declined 6.5% on year to INR 5.56 billion. This was lower than the analysts' estimate of INR 5.80 billion. However, the net profit rose 4.1% from the trailing quarter due to an expansion in the net interest margin. SBI Cards' net interest margin in Apr-Jun rose 28 basis points on year and 3 bps on quarter to 11.2%.
Total expenses in the reporting quarter rose 16.4% on year to INR 42.87 billion. Sequentially, the expenses were 4.2% higher. Within the total expenses, the sharpest on-year increase was in fees and commission expenses, which rose 27.8% on year to INR 1.88 billion in Apr-Jun quarter. This was followed by impairment on financial instruments, which rose 22.8% on year to INR 13.52 billion.
The credit costs for the quarter ended June rose by over a percentage on year to 9.6%. The credit costs were up 58 bps on quarter. The overall credit costs rose due to higher provisions maintained in the Apr-Jun quarter, the credit card company said in its investor presentation. Brokerages tracking the firm had expected the credit cost to rise to nearly 9.1% in Apr-Jun.
The company's gross non-performing asset ratio was 3.07% as on Jun. 30, up 1 basis point on year but down 1 basis point on quarter. The net NPA ratio was 1.42% as on Jun. 30, up 31 bps from a year ago but down 3 bps from a quarter ago.
The credit card company's total income rose 12.3% on year and 4.2% on quarter to INR 50.35 billion, driven by a sharp rise in fees and commission income, which rose 13.7% on year and 4.7% on quarter to INR 21.91 billion. An 11.1% on year rise in interest income to INR 24.93 billion also added to the strong growth in total income.
The company's receivables in Apr-Jun quarter rose 7% on year to INR 566.07 billion. New accounts acquisition moderated in Apr-Jun.
Card spends rose 21% on a year to INR 932.44 billion. Retail spends, which make up the bulk of the total spends, rose 15% on year to INR 824.04 billion in the June quarter and corporate spends rose by 107% on year and 25% on quarter to INR 108.40 billion.
On Friday, shares of SBI Cards ended 0.3% higher at INR 888.50 on the National Stock Exchange. The company announced its earnings after market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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