SBI Cards and Payment Services Limited, in partnership with Google Pay, launched the co-branded Google Pay Flex SBI Card on July 29, 2026. This strategic collaboration aims to merge traditional credit card rewards with the seamless convenience of digital wallets, targeting India’s growing base of digital-first consumers. The new card allows users to earn instant rewards, manage accounts, and access flexible repayment options directly through the Google Pay application, creating a unified payment experience. The disclosure was made pursuant to Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Product Features and Rewards Structure

The Google Pay Flex SBI Card utilizes a "Stars" reward system where one Star is equivalent to ₹1. Customers earn Stars on all value purchases, which can be redeemed instantly at the time of payment or against exclusive vouchers within the Google Pay app. The card offers tiered earning potential based on spending levels, with a yearly cap of up to 18,000 Stars on everyday spends across categories such as groceries, bill payments, travel, utilities, and shopping.

Fees and Welcome Benefits

The joining and annual renewal fee for the card is ₹499 plus applicable taxes, which is reversed if the cardholder achieves annual spends of ₹1,00,000. New cardholders receive a welcome gift worth ₹1,000, structured across multiple benefits upon activation and early usage.

Network Options and Digital Integration

The credit card is available on both RuPay and VISA payment networks. The RuPay variant can be linked to UPI, enabling transactions at millions of merchants nationwide, while both variants support tokenisation on Google Pay for tap-to-pay functionality. Key digital features include instant application and account management within the Google Pay app, an option to convert the latest outstanding bill into convenient EMIs, and seamless integration for earning and redeeming rewards without leaving the app.

Salila Pande, Managing Director & CEO of SBI Card, stated that the launch reflects the company's focus on creating best-in-class products that simplify transactions. Sharath Bulusu, Senior Director at Google Pay, noted that the card aims to make credit as ubiquitous as daily UPI payments, democratizing financial access for millions.

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SBI Cards and Payment Services Limited reported a 20% year-on-year increase in net profit after tax (PAT) to ₹664.44 Crores for the quarter ended June 30, 2026, driven by improved asset quality and a significant decline in gross credit costs. This improvement in profitability is directly attributable to the reduction in credit costs, which enhanced the bottom line despite modest top-line growth where total income from operations rose only 3.4% YoY to ₹5,040.55 Crores. The company’s fee and commission income grew 9.8% YoY to ₹2,405.54 Crores, supported by robust retail spends which expanded 27% YoY. The financial performance coincided with the sourcing of over 1 million new accounts, expanding the cards-in-force portfolio to 2.26 Crore.

The Board of Directors approved the unaudited financial results on July 24, 2026, in compliance with Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were subjected to a limited review by joint statutory auditors M/s V.K. Dhingra & Co. and M/s S.P. Chopra & Co. The company disclosed an additional impairment provision of ₹70 Crores carried over and above the approved Expected Credit Loss (ECL) model due to continuing uncertain geo-political situations, alongside a ₹27 Crore provision for employee benefits arising from the New Labour Codes. During the quarter, the company allotted 14,257 equity shares of ₹10/- each pursuant to the exercise of options under approved employee stock option schemes.

Portfolio Growth and Operational Metrics

SBI Cards demonstrated strong top-line momentum with retail spends growing 27% YoY. The total receivables book expanded to ₹58,269 Crores, marking a 3% YoY growth. Notably, Individual Borrower Non-Performing Exposure (IBNEA) accounted for approximately 55% of overall receivables. Spend per card for retail plus corporate segments reached ₹212,000, indicating healthy utilization rates. The 30-day retail spend active rate remained steady at 53%. Online spend penetration continued to deepen, with UPI spends on RuPay cards growing over 13% quarter-on-quarter.

The following table summarizes the key financial metrics across comparable periods:

Asset Quality and Capital Adequacy

Asset quality metrics showed consistent sequential improvement. The Gross Stage 3 (Non-Performing Asset) ratio declined to 2.04% from 2.41% in the preceding quarter, while the Net Stage 3 ratio fell to 0.83% from 1.04%. The provision coverage ratio improved to 59.88%. The company maintained a robust capital adequacy ratio (CAR) of 25.64%, well above regulatory requirements. Gross credit cost declined sharply to 6.5% from 7.7% in the previous quarter and 7.7% in the corresponding period of FY26. Consequently, earnings before credit cost (EBCC) stood at ₹1,841 Crores.

Analyst Views Post Q1FY27 Results

Following the quarterly results, major brokerages have issued divergent assessments of SBI Cards' outlook. The table below summarizes the latest analyst ratings and target prices:

CLSA's upgrade to Outperform reflects confidence that improved asset quality and a pickup in card acquisitions can drive a recovery, even as near-term loan growth and net interest margin (NIM) remain under pressure. Jefferies maintained its Hold rating, acknowledging the PAT beat driven by lower provisions and near three-year-low net slippages, but flagging that receivables growth and NIM headwinds persist. UBS cut its target price to ₹700 while retaining a Neutral stance, noting that weaker net interest income (NII) and operating profit were offset by sharply lower provisions, with management guiding for credit costs to remain stable-to-lower and growth to recover in the second half. Bernstein remained the most cautious with an Underperform rating and a ₹610 target, pointing to softening underlying profitability as pre-provision operating profit (PPoP) declined, despite the headline EPS growth being entirely credit-cost driven.

What the Numbers Show

The divergence between rising operating costs and declining credit costs highlights a strategic shift towards sustainable profitability through risk mitigation rather than aggressive volume expansion alone. The 301 basis point year-on-year reduction in gross credit cost significantly boosted bottom-line resilience, offsetting the pressure from higher operating expenses linked to business development incentives and employee benefits. The stability in interest income alongside surging fee income suggests a successful diversification of revenue streams, reducing dependency on interest margins. Furthermore, the controlled growth in receivables (3% YoY) relative to spend growth (27% YoY) indicates prudent underwriting standards that prioritize quality over sheer scale.