The ratings factor in continued support from majority shareholder, State Bank of India (SBI), on ongoing basis as well as in the event of distress. Majority ownership and shared brand imply a strong moral obligation on SBI to continue supporting SBI Cards in meeting debt obligation in a timely manner.
The standalone credit risk profile of SBI Cards is supported by its steady market position. The company is the second-largest player in the credit card industry with 2.15 crore cards-in-force (CIF), and market share of 19.0% as on 30 September 2025.
As far as profitability is concerned, while it has remained above average, has witnessed moderation during fiscal 2025 owing to decline in net interest margins (NIM), fee income and elevation in credit costs.
During fiscal 2025, company’s return on assets (RoA) declined to 3.0% as against 4.6% during fiscal 2024. Further during first half of fiscal 2026, the RoA stood at 3.0% (on an annualised basis). Despite profitability remaining above average, it remains susceptible to asset quality challenges owing to unsecured nature of asset class.
In terms of asset quality, the company’s gross non-performing assets (GNPAs) continued to show increasing trajectory during last 4-6 quarters in accordance with the industry dynamics.
As on September 30, 2025, company’s gross NPAs stood at 2.85% which were at 3.08% as on March 31, 2025 and 2.76% as of March 31, 2024. The increase in NPAs mainly driven by increase in delinquencies across overdue buckets.
Hence, company’s ability to keep strong check on its collections and recoveries thereby managing its overall portfolio quality, especially in light of risks inherent in the credit card business, will remain a key monitorable.
SBI Cards is the second-largest player (by CIF) in the credit card business with 2.15 crore CIF and market share of 19% as on 30 September 2025. Spend for fiscal 2025 was Rs 333,480 crore, compared with Rs 329,589 crore in fiscal 2024. Networth stood at Rs 13,782 crore as on 31 March 2025.
The company's profit after tax (PAT) was Rs 1,916 crore on total income (net of finance cost) of Rs 15,459 crore in fiscal 2025, as against Rs 2,408 crore on Rs 14,888 crore, respectively, in fiscal 2024.
The scrip fell 1.55% to currently trade at Rs 875.20 on the BSE.