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Informist, Friday, Jul. 24, 2026

 

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--SBI Cards: See asset growth pick up from H2 on acqusitions, festive season 
--CONTEXT: SBI Cards mgmt's comments in post-earnings concall with analysts 
--SBI Cards: Expect gross credit cost to remain in current range 
--SBI Cards: Confident to continue profitable growth, improve mkt shr in FY27 
--SBI Cards: Expect uptick in EMI portfolio amid upcoming festive season 
--SBI Cards: Cost of funds to remain in current range, don't see much change 
--SBI Cards: See growth in receivables in Oct-Mar 
--SBI Cards: Expect operating costs to go up due to festive season 
--SBI Cards: Expect corporate spends to be around 20% of overall spends 
--SBI Cards: Expect retail spending to be strong in Q2 

 

By Ashutosh Pati and Arya S. Biju

 

MUMBAI – SBI Cards and Payment Services Ltd. expects asset growth to pick up pace in the second half of 2026-27 (Apr-Mar), mainly due to festive demand, its management said at a post-earnings conference call with analysts Friday. Several festivals in the next two quarters are expected to drive growth in the card company's equated monthly instalment portfolio as well as in retail spending. However, this is also likely to lead to an increase in operating costs for SBI Cards, the management said.

 

The company's bottom line showed robust growth for the June quarter despite a rise in its total income. SBI Cards reported a net profit of INR 6.64 billion for the June quarter, up nearly 20% on year. Its total income rose over 3% on year to INR 52.05 billion, while its total expenses increased 0.6% on year to INR 43.12 billion in the reporting quarter.

 

The card company sees gross credit costs either remaining at current levels or moderating further, the management said. Its credit cost for the June quarter fell 301 basis points on year to 6.5%. With resilient domestic macro fundamentals, SBI Cards remains confident in continuing profitable growth and improving market share in FY27. The company's market share in cards in force was 18.6% currently and 19.5% in card spends, the management said.

 

The company saw good growth in online spends during the June quarter. SBI Cards is endeavouring to increase retail spends in the coming quarters. These have been "fairly strong" in the September quarter and the impact of monsoon is yet to be seen, as per the management. They expect corporate spends to remain around 20% of the overall spends for the year. For the June quarter, retail spends rose 14% on year to INR 940.33 billion while corporate spends increased 125% on year to INR 244.42 billion.

 

"... corporate spends, we have earlier stated also, we would like it to be around 20% of our overall spends. Industry typically has an average of around 20% to 25%. We want to be at the lower end of the spectrum. Corporate card spends... we don't give lending options there. So, the customer has to pay back the full outstanding balance. So, the primary source of income is interchange," the management said.

 

SBI Cards' cost of funds is expected to remain in the current range. "... we will see growth in receivables as well. I'm refraining from giving any guidance in terms of the absolute numbers or percentage terms right now," a top official said.

 

Friday, the company's shares ended at INR 618.75 on the National Stock Exchange, down 0.5% from the previous close. The company released its June quarter results after market hours.  End

 

Edited by Saji George Titus

 

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