SBI Card Q1 net profit rises 20% on lower provisions and 27% growth in card spends

Leading pure-play credit card issuer SBI Cards and Payment Services Ltd on Friday (July 24) reported a 19.5% year-on-year increase in net profit to ₹664.4 crore for the first quarter of FY27, compared with ₹556 crore in the year-ago period.

The company’s total revenue increased 3% year-on-year to ₹5,205 crore in Q1 FY27 from ₹5,035 crore in Q1 FY26. Net interest income (NII) remained largely stable, declining marginally by 0.3% to ₹1,676 crore from ₹1,681 crore in the corresponding quarter last year.

The company’s profitability metrics improved during the quarter, with return on average assets (ROAA) rising to 3.9% in Q1 FY27 from 3.4% in Q1 FY26. Return on average equity (ROAE) increased to 16.5% from 15.8%.

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SBI Cards’ Capital Adequacy Ratio stood at 25.6% as of Q1 FY27, with Tier I capital at 20.3%. The company reported growth across key business parameters. Cards-in-force increased 7% year-on-year to 2.26 crore as of Q1 FY27 from 2.12 crore in Q1 FY26.

The number of new accounts opened rose to 1,023 thousand during the quarter, compared with 873 thousand in the year-ago period. Card spends increased 27% year-on-year to ₹1,18,475 crore in Q1 FY27 from ₹93,244 crore in Q1 FY26. Credit card receivables grew 3% to ₹58,269 crore from ₹56,607 crore.

SBI Cards’ market share for cards-in-force stood at 18.6% in Q1 FY27 compared with 19.1% in Q1 FY26. Its market share in spends increased to 19.5% from 16.6%. The company remained ranked second in the industry for cards-in-force, spends and transactions.

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On the income side, interest income declined 3% to ₹2,421 crore from ₹2,493 crore. However, fees and other revenue increased 10% to ₹2,620 crore from ₹2,384 crore. Finance costs declined 8% to ₹745 crore from ₹813 crore. Total operating costs increased 23% to ₹2,620 crore from ₹2,123 crore.

Earnings before credit costs declined 12% to ₹1,841 crore in Q1 FY27 from ₹2,100 crore in the year-ago quarter. However, impairment losses and bad debt expenses fell 30% to ₹948 crore from ₹1,352 crore. The company’s balance sheet size stood at ₹69,707 crore as of June 30, 2026, compared with ₹66,328 crore as of March 31, 2026.

Gross advances, represented by credit card receivables, stood at ₹58,269 crore as of June 30, 2026, compared with ₹56,926 crore at the end of March 2026. The company’s net worth increased to ₹16,463 crore as of June 30, 2026, from ₹15,797 crore as of March 31, 2026.

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Asset quality improved during the quarter. Gross non-performing assets (Gross NPA) declined to 2.04% of gross advances as of June 30, 2026, from 3.07% a year ago. Net non-performing assets (Net NPA) stood at 0.83% as of June 30, 2026, compared with 1.42% in the corresponding period last year.

Shares of SBI Cards and Payment Services Ltd ended at ₹618.95, down by ₹2.80, or 0.45%, on the BSE.