SBI Cards Q1 results: Net profit rises 19.5% to ₹664cr
What's the story
SBI Cards and Payment Services Ltd, India's leading pure-play credit card issuer, has reported a 19.5% year-on-year rise in net profit for the first quarter of FY27. The company's net profit stood at ₹664.4 crore for the quarter ended June 30, compared to ₹556 crore in the same period last year. The growth was primarily driven by lower provisions for bad loans and an increase in card spending.
Financial performance
Total revenue from operations grew by 3.4% YoY
SBI Cards's total revenue from operations also witnessed a 3.4% year-on-year growth, reaching ₹5,041 crore in Q1 FY27 as against ₹5,035 crore in the same quarter last year.
However, the company's net interest income (NII) remained largely stable with a marginal decline of 0.3% to ₹1,676 crore from ₹1,681 crore in the corresponding quarter last year.
Profitability indicators
Profitability metrics improved during the quarter
SBI Cards's profitability metrics improved during the quarter, with return on average assets (ROAA) rising to 3.9% in Q1 FY27 from 3.4% in Q1 FY26.
Return on average equity (ROAE) also increased to 16.5%, up from 15.8%.
The company's Capital Adequacy Ratio stood at 25.6% as of Q1 FY27, with Tier I capital at 20.3%.
Business expansion
Growth across all key business parameters
SBI Cards reported growth across all key business parameters.
The number of cards-in-force rose 7% year-on-year to 2.26 crore as of Q1 FY27 from 2.12 crore in Q1 FY26.
New accounts opened during the quarter also increased significantly to 10.23 lakh, compared to 8.73 lakh in the same period last year.