SBI Cards Q4 profit rises to ₹609 crore; asset quality improves

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.

Management commentary

Managing director and CEO Abhijit Chakravorty said the company delivered a stable performance while maintaining focus on portfolio quality.

“We have delivered steady performance during the quarter with improvement in asset quality and continued growth in spends,” he said.

He added that the company remains focused on sustainable growth.

“We continue to focus on balancing growth with risk, while strengthening our customer franchise and maintaining asset quality.”

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.