According to reports from Business Standard, SBI Cards and Payment Services reported Q4FY26 net profit of ₹610 crore, up 14% year-on-year and 9% quarter-on-quarter. The company's net interest income (NII) grew 3% Y-o-Y to ₹1,670 crore, though it declined 5% Q-o-Q. Total spends rose to ₹1.15 trillion, up 31% Y-o-Y and 1% Q-o-Q, with corporate spends rising 195% Y-o-Y. The cost-to-income ratio increased to 57.2% in Q4FY26 from 55.3% for FY26, and is expected to remain above 55% until FY28.
As reported by Business Standard, credit costs declined sharply by 70 basis points quarter-on-quarter and 140 basis points year-on-year to 8% in Q4FY26. The company took a ₹220 crore overlay over expected credit losses (ECLs) to buffer potential volatility. Gross write-offs declined 6% Q-o-Q, while Stage 2 assets fell 6% Q-o-Q to ₹2,100 crore (3.7% versus 3.9% in Q3FY26). Gross non-performing assets (GNPAs) improved to 2.4%, with Stage 2 and Stage 3 loans together accounting for 6% of the portfolio.
According to Business Standard, card growth was 6% Y-o-Y, while fresh card issuances declined 17% Y-o-Y. Cards-in-force increased 1% Q-o-Q and 6% Y-o-Y to 22.1 million, with new account sourcing at 0.92 million, up 6% Q-o-Q. The company's spends market share was 18.1% in FY26, with total spends of ₹4.3 trillion during the year. Online spends accounted for 65.2% of total spends in FY26, with UPI-linked RuPay cards gaining traction in Tier-II cities.
As reported by Business Standard, receivables growth remained muted at 2% year-on-year in FY26, with receivables standing at ₹56,900 crore, flat Q-o-Q. The company expects card spends may grow at close to 20% annually over FY26-FY28 to around ₹6.2 trillion, though loan-book growth may remain slower at 9%. Management expects stable NIMs and lower credit costs, with the company targeting a return on assets (RoA) of 4-4.5% over the medium term. The stock has undergone a sharp correction over the past six months and is currently trading at multi-year lows.
