SBI Cards and Payment Services Limited is a non-deposit accepting systemically important non-banking financial company registered with the RBI. The Company is engaged in issuing credit cards to consumers in India. It is headquartered in Gurgaon, Haryana. It is a subsidiary of India's largest commercial bank, the State Bank of India. SBI Card was launched in 1998 by the State Bank of India and GE Capital. In December 2017, State Bank of India and The Carlyle Group acquired GE Capital's stake in SBI Card. In March 2020, SBI Card became the first pure-play credit card company to list on the stock exchanges in India.
As India's second-largest credit card issuer, SBI Cards has established itself as a dominant player in the rapidly growing Indian credit card market. India's credit card market has already crossed 100 million outstanding credit cards as of June 2024. Monthly card expenses have also reached INR 1.58 lakh Crore in June 2024. The company operates in a favorable economic environment, with India continuing to be one of the fastest-growing major economies across the world. As per estimates, India's real GDP growth forecast for FY '25 is likely to be around 7.2%.
SBI Cards and Payment Services Ltd is a credit card issuer in India. The company offers a credit card portfolio to individual cardholders and corporate clients, including lifestyle, rewards, travel and fuel, shopping, banking partnership cards, and corporate cards, covering all cardholder segments in terms of income profiles and lifestyles. It offers four primary SBI Card-branded credit cards: SimplySave, SimplyClick, Prime, and Elite, each catering to a varying set of cardholder needs.
The Company offers a wide range of credit cards to individual cardholders and corporate clients, which includes super premium cards, premium cards, travel and shopping cards, classic cards, exclusive co-branded cards, as well as corporate cards. The Company also offers value-added payment products and services. The company earns revenue from selling credit card memberships to cardholders and income earned from the provision of membership services.
SBI Cards has a market capitalization of ₹86,551 Crore as of July 2025 (up 26.0% in 1 year), with revenue of ₹18,072 Crore and profit of ₹1,916 Crore. The company has a market capitalization of ₹85,630 Crore. Promoter holding stands at 68.6%.
SBI Card reported an 11% year-over-year revenue growth for Q1 FY '25, reaching INR 4,483 Crore. PAT was stable at INR 594 Crore. Retail spends rose by 23%, while corporate spends fell sharply. Receivables grew by 22% year-over-year to INR 52,705 Crore.
* Capital adequacy ratio is at 20.6% for Q1 FY '25.
* In Q1 FY '25, ROAA (Return on Average Assets) is 4.1%. ROAE (Return on Average Equity) is at 19.1% during the quarter.
* Net profit for Q4 2024-2025 was ₹534.18 Crore, representing a decline of 19.35% compared to the same period last year.
* The company declared a dividend of ₹2.50 in the quarter ending December 2024, translating to a dividend yield of 0.52%.
The company faces challenges with credit costs, which have been a significant concern. Despite strong financial performance, credit costs increased to 8.5% from 7.5% in the previous quarter, due to customer over-leveraging and life events affecting repayment capacity. Credit costs have been a challenge, rising to 8.5% in Q1 FY '25 from 7.5% in the previous quarter. The Gross Non-Performing Asset (GNPA) ratio increased to 3.06%, with incremental provisions up by INR 51 Crore and write-offs up by INR 105 Crore quarter-on-quarter. The rise in credit costs is primarily due to customers over-leveraging across multiple credit lines.
To address these challenges, SBI Card has refined its sourcing strategies, limited certain accounts, enhanced scorecards, and bolstered its collection infrastructure. During the last 3 months, the company has reduced limits across 500,000 accounts in comparison to the 500,000 done over the previous full financial year. Similarly, in collections, they have significantly increased the capacity across all channels.
Management expects credit costs to stabilize between 7% and 8% towards the latter part of the year. SBI Cards management maintains growth guidance of 17-18% for spends and 12% for AUM.
The company remains focused on sustainable growth, leveraging digital platforms for customer acquisition and expanding its installment lending book. The company's capital adequacy ratio stands strong at 20.6%, ensuring a stable financial footing moving forward.
SBI Cards share price moved up by 4.04% over the last 1 month, 5.13% over the last 3 months, and 28.14% over the last 12 months on BSE. The company's 52-week high share price is ₹930.45 and 52-week low share price is ₹649.00.
36% of analysts recommend a 'HOLD' rating for SBI Cards & Payment Services Ltd with an average target price of ₹900.28. SBI Cards shares surged to a 52-week high following a repo rate cut by RBI. The stock has gained 46% YTD, showing strong market momentum.
SBI Cards is part of multiple major indices, including BSE 500, BSE 200, Nifty 500, Nifty Midcap 100, Nifty Midcap 50, Nifty 200, Nifty Financial Services, and several other specialized indices. This broad index participation reflects the company's significant market presence and institutional investor appeal.
The company continues to navigate the evolving credit card landscape in India, focusing on sustainable growth while managing credit risks effectively. With its strong parentage, robust capital position, and strategic initiatives to address operational challenges, SBI Cards remains well-positioned to capitalize on India's growing credit card market while maintaining its leadership position in the industry.
