ICRA has reaffirmed the credit rating of [ICRA]AAA (Stable) for SBI Cards and Payment Services Limited’s (SBICPSL) various debt instruments and bank facilities. The agency also withdrew the rating for an ₹800 crore Non-Convertible Debenture (NCD) issue as it has no outstanding amount. The reaffirmation reflects SBICPSL’s strong parentage, comfortable profitability, and adequate capitalization, supported by State Bank of India.
ICRA Reaffirms Strong Credit Rating for SBI Card
ICRA Limited has announced the reaffirmation of its credit rating for SBI Cards and Payment Services Limited (SBICPSL), maintaining the outlook at [ICRA]AAA (Stable) across its key debt instruments and bank facilities. This includes Non-Convertible Debentures, Subordinated Debt, bank lines, and term loans, reflecting the agency’s continued confidence in the company’s financial strength and stability.
Rating Action Details
The rating action encompasses the reaffirmation of existing ratings for instruments totaling ₹75,050 crore. Notably, ICRA also withdrew the rating for an ₹800 crore Non-Convertible Debenture (NCD) issue, as there are no outstanding amounts against this specific instrument, in line with ICRA’s policy on rating withdrawals. The previous rated amount for all instruments was ₹75,850 crore.
Key Factors Driving the Rating
The reaffirmation is underpinned by several key strengths: the strong parentage of SBI Cards with majority stake held by State Bank of India (SBI), ensuring significant parental support; the company’s comfortable profitability, with an improved Return on Assets (RoA) of 3.2% in FY2026; and adequate capitalization, with a Tier I capital adequacy of 20.3% as of June 30, 2026. ICRA also noted SBICPSL’s strong liquidity position and improved asset quality indicators.
The outlook remains stable, with ICRA’s expectation that SBICPSL will maintain its robust position in the domestic credit card market, supported by its parentage and profitable business growth. The agency believes SBICPSL will continue to be strategically important to SBI, which will provide ongoing support.
Source: BSE
