SBI Cards and Payment Services Limited , a leading credit card issuer in India, has successfully raised ₹2,000 crore through the issuance of non-convertible debentures (NCDs). The company made this announcement in a recent filing with the stock exchanges.

Key Details of the NCD Issuance

Terms and Conditions

The NCDs are unsecured, rated, taxable, redeemable, and senior in nature. They will be listed on the Wholesale Debt Market Segment of BSE Limited. The interest on these debentures will be paid annually, with the first payment scheduled for July 30, 2026.

Purpose and Impact

While the company has not explicitly stated the purpose of this fundraising, such issuances are typically used to strengthen the balance sheet, support business growth, or refinance existing debt. The successful placement of these NCDs indicates investor confidence in SBI Cards' financial stability and future prospects.

Market Position

SBI Cards and Payment Services Limited, a subsidiary of the State Bank of India, is one of the largest credit card issuers in India. This debt issuance is likely to provide the company with additional financial flexibility to support its operations and potential expansion plans in the competitive credit card market.

Investor Considerations

For investors, these NCDs offer a fixed income opportunity with a relatively short tenure of three years. The 7.05% coupon rate may be attractive in the current interest rate environment, especially considering the company's strong market position and backing from the State Bank of India.

As always, investors should conduct their own due diligence and consider their risk appetite before investing in any debt instruments.

Annual General Meeting Announcement

In related news, SBI Cards has also announced that its 27th Annual General Meeting (AGM) will be held on Friday, August 29, 2025, at 12:30 P.M. (IST) through Video Conferencing (VC) or Other Audio Visual Means (OAVM). This decision aligns with the ongoing trend of virtual shareholder meetings, ensuring wider participation and adherence to any potential health and safety guidelines.

The company will be sending the AGM notice and the Integrated Annual Report for the financial year 2024-25 to shareholders via email. Shareholders who have not registered their email addresses are encouraged to do so to receive these documents electronically.

SBI Cards continues to demonstrate its commitment to shareholder engagement and corporate governance through these initiatives.

SBI Cards and Payment Services , a leading credit card issuer in India, saw its shares decline over 6% following the release of its quarterly results. The sharp decline came as the company reported a 6.5% drop in net profit for the June quarter.

Quarterly Performance Highlights

• Net profit decreased to Rs 556.00 crore, compared to Rs 594.00 crore in the same period last year
• Provision expenses increased 23% year-on-year to Rs 1,351.00 crore
• Asset quality remained stable:
  • Gross NPA at 3.07%
  • Net NPA flat at 1.42%
• Customer spends grew 21% to Rs 93,244.00 crore, driven by corporate spending recovery and retail spending pickup
• Receivables rose 7% to Rs 56,607.00 crore

Market Reaction

• The stock traded down 5.7% at Rs 830.00
• Trading volume was 1.9 times the 30-day average

Analyst Sentiment

Among 29 analysts covering the stock:

The average price target for SBI Cards stands at Rs 880.00.

Conclusion

The decline in SBI Cards' share price reflects investor concerns over the company's quarterly performance, particularly the drop in net profit and increase in provision expenses. Despite stable asset quality and growth in customer spends, the market reaction has been negative. The divided analyst opinions suggest caution, with a slight tilt towards a bearish outlook. Investors and market participants will likely monitor how the company addresses these challenges in the coming quarters.