SBICARDBSEMay 2, 2026

SBI CARDS AND PAYMENT SERVICES

7,436words
127turns
13analyst exchanges
4executives
Management on call
Salila Pande
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Girish Budhiraja
CHIEF SALES AND MARKETING OFFICER
Rashmi Mohanty
CHIEF FINANCIAL OFFICER
Krishna Kant Bishnoi
CHIEF RISK OFFICER
Key numbers — 40 extracted
6.9%
e resilience despite ongoing geopolitical uncertainties with real GDP projected to grow at around 6.9% for the financial year '26-'27. As per IMF, Indian economy is likely to remain a bright spot in a
3.4%
al headwinds. As per the recently released government data, India's retail inflation inched up to 3.4% year-on-year in March from 3.21% in February. Over the past few years, India's digital payments e
3.21%
y released government data, India's retail inflation inched up to 3.4% year-on-year in March from 3.21% in February. Over the past few years, India's digital payments ecosystem has witnessed rapid tran
rs,
il inflation inched up to 3.4% year-on-year in March from 3.21% in February. Over the past few years, India's digital payments ecosystem has witnessed rapid transformation. Digital transactions are be
11x
ket size and increasingly integrated with credit channels. Digital transactions have grown almost 11x between 2021 to 2025 with UPI accounting for almost 80% of overall digital transactions. Within
80%
s. Digital transactions have grown almost 11x between 2021 to 2025 with UPI accounting for almost 80% of overall digital transactions. Within this evolving payment landscape, credit cards continue
12%
nts experience. According to RBI March 2026 data, credit card spends during the year grew roughly 12% year-over-year to INR23.62 trillion. The number of cards-in-force have crossed 118.6 million duri
INR23.62
g to RBI March 2026 data, credit card spends during the year grew roughly 12% year-over-year to INR23.62 trillion. The number of cards-in-force have crossed 118.6 million during this period, reflecting c
118.6 million
r grew roughly 12% year-over-year to INR23.62 trillion. The number of cards-in-force have crossed 118.6 million during this period, reflecting continued adoption across India's expanding base of aspirational c
INR2.50
actful integrity and climate action. This financial year, we also declared an interim dividend of INR2.50 per equity share, enhancing shareholder value. As regards to business performance in Q4 and for
18.6%
ue to be the second largest credit card issuer in the country with cards-in-force market share of 18.6%. During the quarter, we added 917,000 new accounts while maintaining a strong focus on quality-
54%
terms of the new sourcing mix, our share from open market and banca channels in FY '26 stands at 54% and 46%, respectively. As per RBI's 2026 data, our spends market share has further grown to 18.
Guidance — 20 items
Salila Pande
opening
“Revolve rates have been in the range of 22% to 24% over the last 2 years, and we expect this to have a slight downward bias in FY '27.”
Salila Pande
opening
“We expect NIM to remain stable, though at risk from any significant increase in cost of fund as a result of uncertain macroeconomic conditions.”
Salila Pande
opening
“We expect the credit cost to moderate further in FY '27.”
Ajmera
qa
“So how do you see and attribute it going forward?”
Salila Pande
qa
“So we are on track, and we have said that the growth will be calibrated.”
Salila Pande
qa
“We look at the next quarter acquisition to be somewhere in the similar range.”
Rashmi Mohanty
qa
“So, we expect the cost to income to be in the range of 55% to 58% for the next year as well.”
Rashmi Mohanty
qa
“Next year, growth will be a very BAU kind of a growth, we don't expect a very significant increase in the cost to income because of the corporate spend.”
Piran Engineer
qa
“So getting into FY27, what's the outlook?”
Rashmi Mohanty
qa
“Piran, it will be a too early for me to give you any guidance on the cost of funds given that we are still not sure about RBI’s stance given the geopolitical tensions and the uncertainties in the environment.”
Risks & concerns — 15 flagged
As per IMF, Indian economy is likely to remain a bright spot in an increasingly uncertain global environment with growth running at more than twice the global average, supported by strong underlying fundamentals.
— Salila Pande
We augmented our risk management framework, enhanced policies, procedures, models and analytical capabilities across areas, including underwriting, portfolio management, collections, fraud risk management and provisioning while ensuring alignment with evolving regulatory expectations and industry best practices.
— Salila Pande
From optimizing internal processes, attaining insights into customer behavior and preferences, upskilling employee to risk management framework, among others, we are poised to harness full potential of these advancements in financial year '27.
— Salila Pande
We expect NIM to remain stable, though at risk from any significant increase in cost of fund as a result of uncertain macroeconomic conditions.
— Salila Pande
Stage 2 balance, which is portfolio at significant increase in credit risk, have reduced by INR149 crores quarter-over-quarter and INR711 crores Y-o-Y to INR2,090 crores.
— Salila Pande
We are vigilant and monitoring our portfolio for any likely impact of dynamic macroeconomic variables.
— Salila Pande
Yes, on the cost of funds, just for next 1 to 2 quarters, do we still have room to reprice our borrowings so that the cost of funds can still decline?
— Zhixuan Gao
Second question, so just to stress this a bit on margins, while you maintain that NIM would remain stable, if I look at 1 percentage point of revolver mix, while we don't know what is the mix change that will happen in FY27, but assuming even if there is a 1 percentage point drop, there is -- and that gets converted into EMI, there is still a 25, 27 basis points sort of hit on the interest income line or on margin -- overall margin.
— Gaurav
You are right because revolvers are at a much higher rate and 1% decline in revolver has to be compensated, obviously, with a larger mix on the installment lending side.
— Girish Budhiraja
So it saw a very big decline, when the corporate spend went off.
— Girish Budhiraja
Because it's very difficult to forecast that number, right?
— Mahrukh Adajania
And as we have shown in our financial results also, Stage 2, Stage 3 stocks have gone down substantially on account of which we have taken a small write-back of INR47 crores, but we are still holding buffers to be ready and resilient for any, I would say, stress which may emerge in the environment because of the geopolitical risks.
— Salila Pande
However, because the ECL model is still under refresh and as ma’am has already mentioned in the last question, the geopolitical environment is also OSBI Card uncertain.
— Krishna Kant Bishnoi
But when I look at this quarter, even EMI has been pretty weak.
— Anuj Singla
So that is why you see a decline on the instalment asset, but this is typically a trend over years, and it gets built up.
— Girish Budhiraja
Q&A — 13 exchanges
Q
So, my first question is regarding new account addition. Our new account addition has been significantly lower than previous year. So how do you see and attribute it going forward?
Salila Pande
We have mentioned during our previous earnings call that we will target acquisition of 9 lakh to 1 million for the quarter, and we have ended this quarter with around 9.17 lakhs. So we are on track, and we have said that the growth will be calibrated. We look at the next quarter acquisition to be somewhere in the similar range. And continue with adding high-value, good quality customers, which ultimately add value to the overall financials of the company. OSBI Card Okay. My second question is regarding cost-to-income ratio. This year, it is around, let's say, 57.2%, which is, let's say, 6% alm
Q
Congratulations on the strong improvement in asset quality. I have a couple of questions to ask, probably more industry related, but also applies to you. Now firstly, in terms of growth, how should we think about cards-in-force growth now slipping to mid-single digits from double digits over the last couple of years? It's true for you all and the industry. Is it simply put just underwriting tightening and as those filters are loosened, growth picks back up? Or is it just that applications itself are slowing down at the other end?
Salila Pande
So, applications are definitely not slowing down. Your first point was correct. Overall, I think the issuers have seen in the last couple of years, some asset quality issues. So there's more OSBI Card tightening, which has happened on the underwriting side. And that is also being seen to a very larger extent, a reason why very few new customers are being brought into the fold. It's normally the existing customers, credit-tested customers who are getting new cards issued by another new issuer. So yes, there is a little bit of a caution, which has resulted in comparatively muted growth in the in
Q
Yes. Thank you so much for the opportunity. So I just follow-up on the cost of fund question from Piran. How about next 1 to 2 quarters? Is there still kind of a downward repricing room left on our cost of funds? Can it still decline?
Salila Pande
Sorry, can you repeat the question? It’s not very clear. Yes, on the cost of funds, just for next 1 to 2 quarters, do we still have room to reprice our borrowings so that the cost of funds can still decline? As we've stated earlier a that our borrowings do reprice anywhere in a 60- to a 90-day bucket. So yes, there will be some repricing that will happen over the next quarter or so, yes. Okay. IS your question that will the repricing help us in a declining cost of funds? Is that your question? Yes. Yes. Okay. I don't know about that right now. That's what I said earlier in the -- an answer to
Q
Yes, hi. Good evening and thanks for the opportunity. Three questions from my side. Firstly, if I recollect, about 70% of your borrowings were linked to T-bills. Is that still the case?
Rashmi Mohanty
That's right, yes. T-bills or repo rates about 70%, 75% of our borrowing is floating. Understood. Understood. So assuming that the rate stays here, there's no further movement from rate, what do you expect? Let's say, from next two quarter perspective, where do your cost of fund…? Should stay stable in that case. Understood. Sure, sure. Second question, so just to stress this a bit on margins, while you maintain that NIM would remain stable, if I look at 1 percentage point of revolver mix, while we don't know what is the mix change that will happen in FY27, but assuming even if there is a 1 pe
Q
Sure, sure, sure.
Management
Q
Yes, hi. So I had a couple of questions. Probably this was discussed earlier on the call also. So our receivables growth is now 2% year-on-year. And given the war situation and given that even OSBI Card other banks in their commentary were not sounding very optimistic on credit cards growth or to put it in other words, they were more bullish on other segments than cards. So how do you view your near-term growth because of uncertainties and also because of lack of festive season, growth is likely to remain subdued in the near-term, right, 1 to 2 quarters, and then we look forward to the festive
Salila Pande
So Mahrukh, right now, we are not giving any guidance on asset growth. And if you recall in the last earnings call, we had said that the asset growth will follow card acquisition growth. So we are building on card acquisition, and we expect that the asset growth will follow the card acquisition growth. Apart from that, as far as the war situation is concerned, I would say we are keeping a very close eye. There's nothing additional in terms of putting the brakes or reducing the growth that we are working on. Having said that, we will continue to monitor the position and take corrective action,
Q
Good afternoon. Thanks for the opportunity. Based on this INR220 crores of additional provisions that we are carrying, the INR100 crores increase that happened during the quarter, is it on account of the ECL refresh? Or have you made any incremental provisions there?
Krishna Kant Bishnoi
See, whatever provisions we are making, it is not because of the asset quality at all. You can see our Stage 2, Stage 3 is going down. We are selective in our underwriting. So there is no additional provision for that asset quality. However, because the ECL model is still under refresh and as ma’am has already mentioned in the last question, the geopolitical environment is also OSBI Card uncertain. So whatever provision ECL model is giving, we have kept INR100 crores additional this quarter for the future. Sir, what I was trying to understand was this additional INR100 crores increase that has
Q
Hi Girish. Hi, Rashmi. So a couple of questions. The first one is on the open market, both in terms of CIF as well as new sourcing, we are much above 50% now. So this would also reflect OSBI Card on our opex. And while we talk about Banca, the open market is weighing on our CIF as well as new sourcing. So if you can speak about that? Second is that out of the EMI pool, what is the percentage of PL on CC. That is my second question. And third is that we have barely grown in terms of our bottom line by around 13%. And yet we are giving out a dividend. Was that necessary we could have possibly no
Girish Budhiraja
I'll give you the answer for the first and second part before I give it to MD ma'am for the third. So on the banca and open market, the strategy has been consistent that we would try and do 50- 50 from both the channels. And if possible, 55% from banca and 45% from open market, that's the range that we will look at. In the last 1 year, we have been broadly in the same range. However, our tie-ups with some of the digital partners like PhonePe, Flipkart, Tata Neu, IndiGo, some of these partners numbers are working in a very good direction and they give a flip up to the overall open market number
Q
Hi. I just wanted to understand how rent as a spending category is looking and how much impact does it have on your total spend?
Girish Budhiraja
So rent as a category used to be very large till 2 years back. We started levying a fees on it. For us, rental spends is a very low spending category as of now. So there is no impact on us of any kind. In fact, when guidelines had come in that the third-party websites or apps should do the KYC for the landlord and without that they should not allow the rental payment. By that time, our rental payments were already low. So all the growth that you see is actually despite rental de-growing to a large degree. Thanks. That’s all from my side.
Q
Yes. Good afternoon. Thanks for the opportunity. So first question is on the receivable growth. Obviously, we have seen a deceleration there to 2%. But if I recall, we have been flagging that we will see an increase in the new card acquisition and receivable growth will follow. So should we see that FY27, the new card acquisition and the receivable growth acceleration only in FY28? Is that the scenario we should be looking at?
Salila Pande
So Anuj, right now, as I mentioned earlier also, I would not give any guidance on the asset growth. We continue to stick with what we had said earlier that we are working on the card acquisition. The guidance is around 9 lakh to 1 million in a quarter. And as you mentioned, that will lead to asset growth in the coming days. Right now, I'm not giving any guidance on the numbers. Fair enough. And secondly, on the asset mix, while revolver has been trending down for the past many quarters, one offset was supposed to be EMI. And I think Girish has talked about in the past that there have been vari
Q
Hi, thanks for taking my question. Just a couple of them, bookkeeping ones. Your recoveries have shown pretty good traction now nearing almost INR190 crores. So could you give a sense of how large or perhaps written-off book is where you expect still sizable, maybe 10% to 15% recoveries to happen?
Salila Pande
So we don't disclose the written-off portfolio that we have. But yes, we have intensified efforts on the recovery in terms of the written-off pool and that is reaping benefits for us. But do you expect this number to keep inching up from this INR190 crores level? So it will be somewhere in the similar range because now we are seeing a downward trajectory in terms of the write-offs as well. That the effort will continue to recover the most. All right. Understood. And generally, in your presentation, you used to disclose the salaried and self-employed breakup if you could Provide for this quarte
Q
Hi, thanks for the opportunity. The question was on the side of credit cost. So I mean, what kind of moderation can be expected, I mean, given that credit costs have been higher for some time? And related to that, in terms of ROAs at one point of time, we used to have like a 5% from there a moderation to 3%, 3.5%. So on that side, I'd like to know?
Salila Pande
So Atul, although we are not giving any guidance in terms of the credit cost numbers right now, but we will continue to see moderation in terms of the credit cost which is very evident -- if you look at the stocks also, we are seeing continuous reduction in our Stage 3 and Stage 2 stocks. So accordingly, the credit cost will continue to trend downwards. On the ROA, again, we have said in the prior earnings calls as well that we are aiming towards 4% to 4.5% of ROA in the medium term. And that is achievable and we are working towards it. Okay. Thank you. Thank you.
Q
Thank you, Danish. I would like to sincerely thank our shareholders, customers, partners and employees for instilling their trust, support and confidence in the company. Thank you once again and wishing all a successful financial year 2026.
Management
Speaking time
Salila Pande
20
Rashmi Mohanty
19
Moderator
15
Girish Budhiraja
10
Zhixuan Gao
8
Gaurav
8
Rohan M.
8
Pranuj Shah
7
Piran Engineer
6
Krishna Kant Bishnoi
6
Opening remarks
Salila Pande
Thank you, Danish. A very good afternoon to everyone. On behalf of the Board and Management of SBI Cards, I would like to welcome and thank you for joining us today. I would like to extend our gratitude to all the stakeholders for their continued support and trust in the company. At SBI Card, we remain focused on supporting India's rapidly evolving digital payment landscape while further reinforcing our position as India's largest pure-play credit card player. The Indian economy continues to demonstrate resilience despite ongoing geopolitical uncertainties with real GDP projected to grow at around 6.9% for the financial year '26-'27. As per IMF, Indian economy is likely to remain a bright spot in an increasingly uncertain global environment with growth running at more than twice the global average, supported by strong underlying fundamentals. At the same time, some moderation may be seen due to elevated energy prices and external headwinds. As per the recently released government data,
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