Earnings Review
Lower credit costs drive SBI Cards Q4 PAT, beats view
This story was originally published at 17:11 IST on 27 April 2026
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--SBI Cards Jan-Mar net profit INR 6.09 bln
--Analysts saw SBI Cards Jan-Mar net profit at INR 5.97 bln
--SBI Cards Jan-Mar net profit INR 6.09 bln vs INR 5.34 bln year ago
--SBI Cards Jan-Mar revenue INR 49.35 bln vs INR 46.74 bln year ago
--SBI Cards FY26 net profit INR 21.67 bln vs INR 19.16 bln year ago
--SBI Cards FY26 revenue INR 199.00 bln vs INR 180.72 bln year ago
--SBI Cards Jan-Mar NIM 11.1%, up 5 bps on quarter
--SBI Cards Jan-Mar credit cost 7.7%, down 55 bps on quarter
--SBI Cards Gross NPA ratio 2.41% on Mar 31 vs 2.86% qtr ago
--SBI Cards Net NPA ratio 1.04% on Mar 31 vs 1.28% qtr ago
--SBI Cards Jan-Mar retail spends INR 897.86 bln, up 13% on year
--SBI Cards Jan-Mar receivables at INR 569.26 bln, up 2% on year
--SBI Cards: Cards-in-force at 22.1 mln on Mar 31, up 6% on year
By Arya S. Biju
MUMBAI – SBI Cards and Payments Services Ltd. reported an on-year rise in its net profit for the March quarter, the third time in 2025–26 (Apr-Mar), on the back of higher fees and commission income and a fall in credit costs. The non-banking financial company's bottom line for the quarter was also slightly higher than the Street's view. However, the rise in the metric was limited by a slight contraction in the net interest margin on a year-on-year basis.
The finance company's net profit for the reporting quarter grew over 14% on year to INR 6.09 billion, slightly above the INR 5.97 billion estimated by analysts. The on-year growth in net profit was, however, lower than the over 45% jump it reported in the trailing quarter. With this, the company's bottom line has grown on a year-on-year basis for the third straight quarter after falling for four quarters in a row.
The company's total income rose over 7% on year but fell more than 3% sequentially to INR 51.87 billion in the March quarter. Revenue from operations for the quarter rose nearly 6% on year to INR 49.35 billion, led by a near 12% on-year jump in fees and commission income to INR 23.43 billion. The company's interest income, on other hand, fell 1% on year and 6% sequentially to INR 23.82 billion.
The company's business development incentive income increased over 47% on year to INR 2.03 billion, adding to its total revenue. Its other income for the quarter also increased 60% on year to INR 2.53 billion.
The total expenditure of the company rose over 6% on year to INR 43.71 billion in the reporting quarter, driven by a near 14% on-year rise in its operating and other expenses to INR 19.61 billion. Its fees and commission expenses for the quarter more than doubled on year to INR 4.09 billion. On other hand, the company's expenses related to impairment on financial instruments and finanace costs fell around 12% and over 10% on year to INR 10.97 billion and INR 7.14 billion, respectively.
SBI Cards' net interest margin declined 10 basis points on year but improved by 5 bps sequentially to 11.1% in the March quarter. The company's credit cost was 7.7% in the reporting quarter, down 128 bps on year and 55 bps on quarter. The finance company's asset quality broadly improved in the March quarter. Its gross non-performing asset ratio was 2.41% as of Mar. 31, down 67 bps on year and 46 bps on quarter. The net NPA ratio was 1.04% as of Mar. 31, down 42 bps on year and 24 bps on quarter.
During the March quarter the company had a provision reversal of INR 470 million. Its provision coverage ratio improved 412 bps on year to 57.6% as of Mar. 31. The company's credit card receivables for the quarter was INR 569.26 billion, up 2% on year. Its cards-in-force increased 6% on year to 22.1 million as of Mar. 31 while its new accounts volume declined to 917,000 in the reporting quarter from 1.11 million a year ago.
Card spends for the quarter rose 31% on year to INR 1.15 trillion. Retail spends, which make up the bulk of the total spends, rose 13% on year to INR 897.86 billion. Corporate spends nearly tripled year on year to INR 255.64 billion.
For the finanacial year ended Mar. 31, the company reported net profit of INR 21.67 billion, up 13% on year. Its total income for the full year rose 11% on year to INR 207.08 billion and its total revenue from operations grew over 10% to INR 199 billion.
Shares of SBI Cards and Payments Services closed 0.1% higher at INR 670.70 Friday, recovering from around 1% decline it saw soon after the quarterly earnings announcement. End
Edited by Akul Nishant Akhoury
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