SBI Cards and Payment Services , India's second-largest credit card issuer, reported robust growth in the second quarter, driven by strong festive season spending and strategic partnerships. The company's performance highlights its resilience in a competitive market and its ability to capitalize on India's growing digital payments landscape.

Key Financial Highlights

Record-Breaking Spend and Strategic Partnerships

SBI Cards achieved a milestone this quarter with total spend reaching an all-time high of ₹1,07,063.00 crores, marking a significant 31% year-over-year growth. The company's retail spend, which accounts for the majority of its transactions, grew by 17% to ₹89,611.00 crores.

To further strengthen its market position, SBI Cards launched three new co-branded credit cards during the quarter:

1. Flipkart SBI Card: Offering curated cashback benefits for everyday shopping
2. PhonePe SBI Card: Combining convenience and digital agility
3. IndiGo SBI Card: Catering to frequent travelers

These strategic partnerships aim to tap into the growing e-commerce, digital payments, and travel sectors, potentially driving future growth in card acquisitions and spend.

Customer Acquisition and Market Share

SBI Cards added 9,36,000 new accounts during the quarter, bringing its total cards-in-force to 2.15 crores. The company maintained its position as the second-largest credit card issuer in India with a 19% market share in cards-in-force. Notably, its spend market share increased to 16.8% as of August 2025, according to RBI data.

Asset Quality and Financial Performance

The company's asset quality showed improvement, with gross non-performing assets (GNPA) decreasing to 2.85% from 3.07% in the previous quarter. This improvement reflects the effectiveness of SBI Cards' risk management strategies and underwriting practices.

While the company's profitability grew, with a 10% year-over-year increase in profit after tax to ₹445.00 crores, it faced some pressure on margins. The cost-to-income ratio increased to 56.8%, primarily due to higher festive campaign costs and corporate passback expenses.

Digital Transformation and Future Outlook

SBI Cards continues to adapt to the evolving digital landscape, with online spends contributing 62.5% of total retail spend in the first half of FY26. The company is also seeing growth in UPI-linked credit card usage, which increased 16% quarter-over-quarter, mainly in categories such as department stores, groceries, and utilities.

Looking ahead, SBI Cards remains optimistic about the growth prospects in the credit card industry. The company is focused on maintaining robust asset quality and prudent risk management while pursuing sustainable growth strategies.

As India's digital payment landscape continues to evolve, with projections suggesting a tripling of transaction volumes by FY 2030, SBI Cards is well-positioned to capitalize on these opportunities through its diverse product offerings and strategic partnerships.

SBI Cards , a leading credit card issuer in India, has announced updates to its financial guidance for the upcoming quarters and fiscal year 2026 (FY26). The company has shared insights on various financial metrics, including credit costs, cost-to-income ratio, and new account additions.

Credit Costs and Financial Outlook

SBI Cards anticipates that its credit costs will remain under 9% in the upcoming quarters, providing a positive outlook for the company's risk management strategies. This projection suggests that the company expects to maintain a stable credit environment in the near future.

FY26 Guidance Updates

The company has made several adjustments to its FY26 guidance:

The increase in the cost-to-income ratio guidance for FY26 is attributed to higher corporate spending. This adjustment may reflect the company's plans for expansion or investments in technology and infrastructure.

New Account Growth and Asset Quality

Despite the changes in other metrics, SBI Cards remains confident in its ability to add new accounts. The company has maintained its guidance of adding between 0.9 to 1.0 million new accounts, indicating a steady growth trajectory in its customer base.

The lowered guidance for IBNEA to 10-12% suggests a more conservative approach to managing interest-bearing assets. This adjustment could be a strategic move to optimize the company's balance sheet and risk profile.

Maintaining Net Interest Margins

SBI Cards aims to maintain its current Net Interest Margin (NIM) levels. This indicates the company's confidence in its ability to manage the spread between interest income and interest expenses effectively, even in a changing financial landscape.

The updated guidance from SBI Cards provides a comprehensive view of the company's financial strategy, balancing growth with prudent risk management. As the credit card industry continues to evolve, SBI Cards' adjustments to its financial targets demonstrate its adaptability to market conditions and commitment to sustainable growth.