SBI Cards reported a robust Q3 FY’26, demonstrating resilience amidst geopolitical uncertainties. Key highlights include record spends of INR 1,14,702 Crore, an 8% Y-o-Y growth in cards-in-force, and a profit after tax of INR557 crores, up 45% Y-o-Y. The company is focused on sustainable growth, strategic partnerships, and disciplined portfolio management, while cautiously navigating market dynamics and focusing on profitability and managing asset quality effectively.
Financial Performance Overview
SBI Cards showcased a strong performance in Q3 FY’26, achieving its highest-ever spends at INR 1,14,702 Crore, representing a substantial 33% Y-o-Y growth. The company’s cards-in-force grew to approximately 2 crores 18 lakh, an 8% increase Y-o-Y. Profit after tax reached INR557 crores, a notable 45% Y-o-Y surge, primarily driven by improved gross credit cost and a lower cost of funds.
Key Performance Metrics
Several key metrics contributed to SBI Card’s success during the quarter:
- Retail Spend: Reached INR91,962 crores, marking a 14% Y-o-Y growth.
- Online Spend: Contributed around 62.1% of total retail spends for the first nine months of FY’26.
- Corporate Spends: Witnessed strong growth, reaching INR22,739 crores.
- Revenue from Operations: Increased to INR5,127 crores, an 11% Y-o-Y growth.
- Receivables: Amounted to INR57,213 crores, reflecting nearly 4% Y-o-Y growth.
Strategic Initiatives and Outlook
SBI Card launched several customer-centric initiatives, including the Khushiyan Unlimited festive campaign. Strategic partnerships with leading players like Amazon, Flipkart, and Apple continue to enrich customer experiences. The company aims to acquire approximately 900,000 to 1 million new accounts each quarter while maintaining a focus on quality and premium accounts.
Looking ahead, SBI Card remains focused on strengthening its risk management framework, moderating credit costs, and maintaining healthy asset quality to ensure long-term robustness and resilience. The company plans to scale its business in a calibrated manner to achieve stronger and more sustainable profitable growth.
Asset Quality and Provisions
Gross credit cost improved to 8.3% from 9% in the previous quarter, primarily due to lower gross write-offs. Gross NPA remained flat at 2.86%, but the NPA stock reduced by INR67 crores quarter-over-quarter and INR140 crores year-over-year to INR1,638 crores. A write-back of INR121 crores of provision occurred as per the ECL model but was retained, resulting in an additional provision.
Future Growth & Strategy
Going forward, SBI Card will focus on increasing the installment asset, which is experiencing higher growth rates. The strategy involves a measured approach to customer acquisition with an emphasis on profitability and managing asset quality, and incremental customers will be onboarded as credit costs become more comfortable.
Source: BSE
