Market Performance
- SBI Cards share price fell 6.1% intraday to ₹834.75 on July 28, marking a 15‑week low.
- The drop came post Q1 FY26 results, weighed down by higher write-offs.
Main News
SBI Cards and Payment Services, majority-owned by State Bank of India, posted its fourth straight quarterly profit decline as delinquencies stayed elevated.
Financial Snapshot (Q1 FY26 vs Q1 FY25)
- Net profit: ₹556 crore, – 6% (₹594 crore a year ago)
- Total revenue: ₹5,035 crore, + 12% (₹4,483 crore)
- Impairment losses & bad debt expenses: ₹1,352 crore, + 23% (₹1,101 crore)
- Gross write-offs: ₹1,280 crore, + 32% YoY
- Gross NPA ratio: 3.07% (vs 3.08% in the previous quarter; 3.06% a year ago)
- Cardholder spends: ₹93,244 crore, + 21% YoY
- Cards‑in‑force: + 10% YoY
The broader lending industry is simultaneously contending with rising bad loans in microfinance, credit cards, and personal loans.
Company Details
SBI Cards is a non-banking financial company (NBFC) offering a wide credit card portfolio to individuals and corporates. Its suite spans lifestyle, rewards, travel & fuel, banking partnership cards, and corporate cards, covering multiple income profiles and lifestyle segments.
Summary
- SBI Cards share price slipped sharply after Q1 numbers showed a 6% profit decline and higher credit costs.
- Revenue grew 12%, but impairments (+23%) and gross write-offs (+32%) stayed elevated.
- Asset quality was largely flat, with GNPA at 3.07%.
- Consumer activity remained strong, with 21% higher spends and 10% growth in cards‑in‑force.
Overall, the SBI Cards share price reacted to persistently high write-offs and impairment charges, even as topline growth and spend momentum held up.
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