Analyst Concall
SBI Cards aims up to 1 mln new users in Q1, similar to Q4
This story was originally published at 18:40 IST on 27 April 2026
Register to read our real-time news.Informist, Monday, Apr. 27, 2026
Please click here to read all liners published on this story
--SBI Cards: Expect net interest margin to remain stable going forward
--CONTEXT: SBI Cards mgmt's comments in post-earnings concall with analysts
--SBI Cards: Uncertain macroeconomic conditions may pose threat to NIM
--SBI Cards: Expect to acquire 900,000-1 mln users in Q1, same as in Q4
--SBI Cards: Cost to income seen at 55-58% for FY27
--SBI Cards: Holding off on asset growth guidance owing to war uncertainty
--SBI Cards: Intensified efforts on recoveries, reaping the benefits now
--SBI Cards: Will continue to see a moderation in credit costs
By Eshitva Prakash and Anand JC
MUMBAI – SBI Cards and Payment Services Ltd. expects to add 900,000–1 million accounts in the June quarter, in line with the earlier guidance and similar to the March quarter, its management said in a post-earnings conference call with analysts Monday. However, the management refrained from providing any guidance on asset growth, citing macroeconomic uncertainties stoked by the war in West Asia.
The credit card pure-player added 917,000 new accounts in the March quarter, down 17% on year. "We look at the next quarter's acquisition to be somewhere in a similar range and continue with adding high value with quality customers, which ultimately adds value to the overall financials of the company," Managing Director and Chief Executive Officer Salila Pande said.
The company's net interest margin for the March quarter was 11.1%, up 5 basis points on quarter but down 10 bps on year. SBI Cards' management expects the net interest margin to be stable in the upcoming quarter. However, they flagged a downside risk if the cost of funds rises amid war-related uncertainties. More
The credit card company said it is seeing a downward trend in write-offs and expects continued moderation in credit costs. Its credit cost improved by 55 basis points on quarter in Jan-Mar to 7.7% and its asset quality also showed signs of improvement, as non-performing assets declined. The company's recoveries neared INR 1.90 billion in the quarter. The company said it has intensified recovery efforts in recent quarters and is now reaping the benefits.
SBI Cards' cost-to-income ratio rose 39 bps sequentially and surged 589 bps on year to 57.2%, largely because of higher corporate spending in the previous financial year. "We don't expect a very significant increase in the cost-to-income because of corporate spending (next year)," it said.
The company's total provisions also moderated slightly to INR 19.42 billion in the March quarter. However, its provisions for stage 3 loans rose 100 bps on quarter to 57.6%. This increase, management clarified, did not indicate any anticipated stress on asset quality. Instead, the company's decision to increase the management overlay under the expected credit loss model raised the figure by INR 1 billion. "Whatever provisions we are making, it is not because of the asset quality at all," the management said. "You can see our stage two, stage three (non-performing asset ratio) is going down. "We have taken a small write-back of INR 470 million (due to gross and net NPA improvement), but we are still holding buffers to be ready and resilient for any, I would say, stress which may have come in the environment because of the geopolitical risk," the company's management said.
Regarding customer acquisition, the company said that a few new users are being added to the fold in the credit card industry. "It's normally the existing customers, credit-tested customers who are getting new cards issued on another new issue," the company said. However, this trend does not impact SBI Cards as much because of a strong bancassurance channel, which provides visibility over customers who may be new to credit cards, the company said. For such customers, the company also has separate underwriting models.
SBI Cards reiterated its plan to improve return on assets to 4–4.5% in the medium term from 3.2% in FY25.
For the quarter ended March, the company reported a net profit of INR 6.09 billion on revenues of INR 49.35 billion. Monday, its shares ended marginally higher at INR 670.70 on the National Stock Exchange. The company annouced its results during market hours. End
Edited by Saji George Titus
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. 2026. All rights reserved.
To read more please subscribe
Share this Story:
