SBI Cards and Payment Services reported a steady March quarter performance, with profit rising year-on-year and asset quality improving, even as operating costs remained elevated.

Profit growth in line with estimates

The company reported a net profit of ₹609 crore for Q4 FY26, up from ₹534 crore in the year-ago period and broadly in line with street expectations.

Total income rose to ₹5,187 crore from ₹4,832 crore a year earlier, supported by growth in fee-based income and stable interest earnings, according to its exchange filing.

For the full year, profit after tax stood at ₹2,167 crore, up 13% year-on-year.

Asset quality shows improvement

Asset quality improved during the quarter, with gross stage 3 assets declining to 2.41% from 2.86% in the previous quarter.

Net stage 3 ratio also improved to 1.04% from 1.28% sequentially, reflecting better credit performance and lower stress in the portfolio.

On a year-on-year basis, gross NPAs declined from 3.08%, while net NPAs improved from 1.46%, as per the company’s disclosures.

Costs remain elevated

Operating costs rose sharply during the quarter, increasing to ₹2,561 crore from ₹2,073 crore a year ago, as the company continued to invest in business growth and customer acquisition.

At the same time, impairment losses and bad debt expenses declined 12% year-on-year to ₹1,097 crore, providing support to profitability.

Finance costs also eased to ₹714 crore, down from ₹795 crore a year earlier.

Spends remained strong, growing 31% year-on-year to ₹1,15,350 crore during the quarter, while card-in-force increased to 2.21 crore, up 6% from a year ago.

However, new account acquisitions declined to 917,000 from 1.1 million a year earlier, indicating moderation in customer additions.

The company’s capital adequacy ratio stood at 25.5%, with Tier-1 capital at 20%, well above regulatory requirements, providing adequate buffer for future growth.

Shares of SBI Cards and Payment Services ended marginally lower at ₹670 apiece on the NSE on Monday. The stock has declined over 22% in the past year, underperforming the broader Nifty 100 index, which has gained nearly 1% over the same period.