More Stories

Informist, Friday, Oct. 24, 2025

--SBI Cards: NIM may stay at current level of 11.2% in coming qtrs 
--SBI Cards: Cost-to-income may average near 56% in FY26 
--CONTEXT: SBI Cards' mgmt speaking at analyst call post Jul-Sept earnings 
--SBI Cards: See credit cost falling below 9% in upcoming qtrs 

By Krity Ambey and Sagar Sen

NEW DELHI – SBI Cards and Payments Services Ltd., whose credit costs showed some improvement in the September quarter after weighing on the company's net profit for a year, expects the costs to fall below 9% in the coming two quarters of the current financial year, the management said Friday in a call with analysts after releasing the financial results for Jul-Sept. But the management refrained from giving a specific projection for credit cost in the current year as well as the next one.

The company's net profit rose 10% on year to INR 4.45 billion in the September quarter as credit costs fell 58 basis points on quarter and 2 bps on year to 9%. Shares of SBI Cards, which released its results after the market closed, ended nearly flat at INR 929 on the National Stock Exchange.

The management had expected credit costs to decline in the September quarter as they had anticipated the full impact of repo rate cut of 100 bps by the Reserve Bank of India to be visible in the reporting quarter. With this trend, the credit card issuer's cost-to-income may remain in guidance range of 54-56%, the management said. "But given the higher corporate spend, we'll be on the higher side of the range," the management said.

"As the impact of the repo rate cut has been fully absorbed, we will hold on to the NIM (net interest margin)," the management said. SBI Cards' net interest margin rose 61 bps on year to 11.2% in the September quarter but was up just 1 bps on quarter.   End

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.