SBI Card Q1 Results | Net profit drops 6% amid rising bad debts, impairments; NII up

Leading pure-play credit card issuer SBI Cards and Payment Services Ltd on Friday (July 25), reported a 6.4% year-on-year decline in net profit at ₹556 crore for the June quarter, down from ₹594 crore in Q1FY26.

Net interest income (NII) increased 13.8%, coming at ₹1,680 crore against ₹1,476 crore in the corresponding quarter of FY25.

The company's total income rose 12% to ₹5,035 crore, supported by an 11% increase in interest income to ₹2,493 crore and a 13% rise in fee and commission income to ₹2,384 crore. Earnings before credit costs rose 11% to ₹2,100 crore, but were offset by a 23% increase in impairment losses and bad debts, which stood at ₹1,352 crore for the quarter.

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Operating costs rose 17% YoY to ₹2,123 crore, while finance costs increased 6% to ₹813 crore, attributed to higher receivables. The company’s return metrics weakened, with return on average assets (ROAA) declining to 3.4% from 4.1% and RETURN ON AVERAGE EQUITY (ROAE) falling to 15.8% from 19.1% a year ago.

Cards-in-force grew 10% YoY to 2.12 crore as of June 30, 2025, from 1.92 crore in Q1FY25, while new account additions declined slightly to 8.73 lakh from 9.04 lakh a year ago. Total card spends rose 21% YoY to ₹93,244 crore, and receivables increased 7% to ₹56,607 crore. The company held a 19.1% market share in cards-in-force and 16.6% in spends, ranking No. 2 and No. 3, respectively, in the industry.

Gross non-performing assets (GNPA) stood at 3.07% in the June quarter against 3.08% in the March quarter. Net NPA came at 1.42% against 1.46% quarter-on-quarter. The capital adequacy ratio improved to 23.2% as of June 30, 2025, up from 20.6% a year earlier, with tier 1 capital at 17.9%.

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As of June 30, 2025, the company’s balance sheet size stood at ₹66,009 crore, marginally up from ₹65,546 crore as of March 31. Gross advances (credit card receivables) amounted to ₹56,607 crore, and net worth increased to ₹14,413 crore from ₹13,853 crore at the end of FY25.

The results came after the close of the market hours. Shares of SBI Cards and Payment Services Ltd ended at ₹889.05, up by ₹3.25 or 0.37%, on the BSE.