SBI Cards and Payment Services Ltd. (SBI Card) posted a 10% year-on-year increase in net profit to Rs. 445 crore for the quarter ended September 2025, driven by higher card spending and improved interest income. The company’s total revenue rose on the back of strong credit card usage, expanding customer base, and consistent growth in revolving balances. Despite competitive pressures and rising finance costs, SBI Card maintained a steady asset quality profile. The results reflect the company’s resilience amid fluctuating consumer sentiment and evolving dynamics in India’s digital payments and credit ecosystem.
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Strong Financial Performance Driven by Card Usage
SBI Card, one of India’s leading credit card issuers, reported a 10% growth in quarterly net profit to Rs. 445 crore in the second quarter of FY2025-26, up from Rs. 405 crore a year earlier. The improvement was primarily supported by increased card spending, higher receivables, and steady interest income from revolving balances.
Total revenue from operations rose in tandem with India’s robust consumer spending, reflecting higher demand for retail and travel-related purchases. The festive season and strong adoption of digital payment channels further contributed to the company’s performance.
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Revenue Growth and Cost Management
SBI Card’s total income saw healthy growth, driven by a rise in both interest income and fee-based revenue. The company’s non-interest income—comprising card fees, merchant commissions, and service charges—also contributed significantly to overall earnings.
While operating expenses increased due to higher marketing and technology investments, the cost-to-income ratio remained within manageable limits. The company’s prudent cost control measures and focus on enhancing operational efficiency helped offset the impact of inflationary pressures and rising funding costs.
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Asset Quality Remains Stable
Despite expansion in card issuance and higher spending, SBI Card maintained stable asset quality during the quarter. The gross non-performing assets (GNPA) ratio remained broadly unchanged, reflecting disciplined credit underwriting and proactive risk management.
The company has been strengthening its portfolio quality by leveraging advanced analytics and data-driven risk assessment tools. Focused recovery efforts and early delinquency monitoring have further helped sustain credit performance amid a volatile macroeconomic environment.
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Customer Base and Market Position
SBI Card continued to expand its customer base, supported by strategic tie-ups with leading retail brands, e-commerce platforms, and financial institutions. The company’s deep integration with the State Bank of India’s extensive branch network remains a key driver of customer acquisition and cross-selling opportunities.
With a growing share in India’s credit card market, SBI Card is positioning itself as a preferred choice among consumers seeking convenient, secure, and rewarding payment solutions. The company’s product diversification—across travel, lifestyle, and co-branded cards—has also enhanced its market competitiveness.
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Outlook: Sustained Growth Amid Digital Transformation
Looking ahead, SBI Card expects continued growth, supported by rising consumer confidence, increasing digital adoption, and India’s expanding middle-class segment. The company’s investments in technology, data analytics, and digital onboarding are likely to enhance customer experience and operational agility.
However, management remains cautious about potential macroeconomic headwinds, including interest rate fluctuations and credit cost pressures. By maintaining a balanced growth approach and prioritizing risk management, SBI Card aims to deliver sustainable profitability while supporting India’s broader shift toward a cashless economy.
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Conclusion
SBI Card’s 10% rise in second-quarter profit underscores its financial resilience, disciplined risk management, and ability to leverage India’s booming digital payments ecosystem. As consumer spending rebounds and credit penetration deepens, the company remains well-positioned to strengthen its market leadership and deliver consistent value to shareholders in the evolving financial landscape.
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