CRISIL Ratings has enhanced the total bank loan facilities rating for SBI Cards and Payment Services Limited to Rs 62,000 crore from Rs 57,000 crore, while reaffirming its 'CRISIL AAA/Stable/CRISIL A1+' ratings on the company's debt instruments and bank facilities.

Key Rating Factors

The ratings reflect several key factors:

1. Strong Parent Support: The ratings factor in continued support from the majority shareholder, State Bank of India (SBI), which holds a 68.6% stake in SBI Cards.

2. Market Position: SBI Cards maintains a steady market position as the second-largest credit card player in India. The company held a 19% market share with 2.15 crore cards-in-force (CIF).

3. Profitability: Despite a moderation in profitability, SBI Cards' return on assets (RoA) remains above average. The RoA declined to 3.0% from 4.6%, primarily due to a decrease in net interest margins, fee income, and an increase in credit costs.

4. Asset Quality: The company's gross non-performing assets (GNPAs) stood at 2.85%, compared to 3.08% and 2.76% previously. The increase in NPAs is mainly driven by rising delinquencies across overdue buckets.

Financial Performance

SBI Cards reported the following financial metrics:

Outlook and Sensitivity Factors

CRISIL maintains a 'Stable' outlook on SBI Cards, expecting the company to continue benefiting from the financial and managerial support of its parent, SBI. The rating agency anticipates an improvement in the company's market position over the medium term while sustaining profitability.

However, investors should note that any downgrade in SBI's rating or a material change in SBI's shareholding (below 50%) or support philosophy could result in a similar rating action on SBI Cards.

Conclusion

The enhancement of SBI Cards' bank loan facilities rating, coupled with the reaffirmation of its AAA rating, underscores the company's strong market position and the crucial support it receives from its parent, SBI. While there has been a moderation in profitability and some increase in NPAs, the overall financial profile remains robust.

SBI Cards and Payment Services Limited , a leading credit card issuer in India, has announced significant changes in its Board of Directors.

New Appointment

Anuradha Rao has been appointed as an Additional Independent Director for a term of three years, effective November 13, 2025. This appointment is subject to shareholder approval.

Director Resignations

Shamsher Singh

Shamsher Singh, who served as a Non-executive Nominee Director, has resigned from his position effective November 13, 2025. Singh, nominated to the Board by State Bank of India (SBI), cited his inability to devote adequate time to Board matters as the primary reason for his departure. This decision stems from the increasing demands of his role as Deputy Managing Director for Transaction Banking New Initiatives at SBI.

In his resignation letter, Singh expressed:

"My inability to devote adequate time for Board matters, due to demands from my role in the Bank has necessitated this decision which I hope you would appreciate."

Completion of Terms

Dinesh Kumar Mehrotra and Anuradha Shripad Nadkarni have completed their second terms as Independent Directors and ceased to be directors from November 13, 2025.

Impact and Acknowledgments

The resignation of Board members, especially one nominated by the parent company, is a significant event for SBI Cards. These changes may lead to shifts in the dynamics of the company's Board.

In his parting message, Singh acknowledged the support he received during his tenure:

"I would like to express my heartfelt appreciation to my fellow Board Members, the management team and all the stakeholders for their unwavering support and collaboration throughout my tenure. It has been an honour to serve this esteemed organization."

The Board and management of SBI Cards have recognized Singh's valuable contributions and guidance during his time with the company.

Looking Ahead

While Singh's resignation marks the end of his direct involvement with SBI Cards' Board, he expressed confidence in the company's future:

"I extend my best wishes to the entire team for continued success, and I am confident that the company will continue to thrive and grow in years to come."

With these changes, SBI Cards may initiate the process of finding suitable replacements, potentially seeking another nominee from State Bank of India to maintain the parent company's representation on the Board.