ICRA has reaffirmed SBI Card’s long-term and short-term ratings at [ICRA]AAA(Stable)/[ICRA]A1+. The rating agency also enhanced the rated amount for term loans to ₹15,000 crore. Additionally, the rating for certain non-convertible debentures was reaffirmed and withdrawn following their maturity, reflecting SBI Card’s solid financial standing and stable outlook.
ICRA Rating Update
SBI Cards and Payment Services Limited has received an updated credit assessment from ICRA. The rating agency has reaffirmed the ratings for various debt instruments and bank facilities, demonstrating confidence in the company’s financial health. The announcement was made on October 24, 2025.
Key Rating Actions
- Non-Convertible Debentures: Rating of [ICRA]AAA (Stable) reaffirmed for ₹8,550 crore. A separate rating of [ICRA]AAA (Stable) for ₹500 crore was reaffirmed and subsequently withdrawn.
- Subordinated Debt: Rating of [ICRA]AAA (Stable) reaffirmed for ₹5,300 crore.
- Long Term/Short Term Bank Lines: Rating of [ICRA]AAA(Stable)/[ICRA]A1+ reaffirmed for ₹34,000 crore.
- Long Term/Short Term Bank Lines – Others: Rating of [ICRA]AAA(Stable)/[ICRA]A1+ reaffirmed for ₹13,000 crore.
- Term Loan: Rating of [ICRA]AAA (Stable) reaffirmed/assigned for an enhanced amount of ₹15,000 crore (previous amount: ₹10,000 crore).
Rationale for Ratings
The ratings consider the strong parentage of SBI Card, with State Bank of India (SBI) holding a majority stake. ICRA views the credit card business as strategically important to SBI and expects the parent to continue providing support if required. The ratings also factor in SBI Card’s strong liquidity and adequate capitalization.
While asset quality indicators have weakened slightly, with gross stage 3 at 3.1% as of June 30, 2025, ICRA anticipates that SBI Card will maintain a strong position in the domestic credit card industry. The stable outlook reflects expectations of profitable growth and continued branding support from SBI.
Financial Highlights
As of June 30, 2025, SBI Card reported a net worth of ₹14,342 crore and a gearing of 3.2 times. The Tier I CRAR stood at 17.95%, and the total CRAR was 23.2%. For Q1 FY2026, the company’s net profitability (return on assets) was 3.3%.
Source: BSE
