SBI Cards and Payment Services Limited , a leading player in the Indian credit card market, has received a significant boost to its Environmental, Social, and Governance (ESG) credentials. The company recently announced an upgrade in its ESG rating from MSCI ESG Ratings and Research Private Limited, a SEBI registered ESG rating provider.

ESG Rating Upgrade

SBI Cards' ESG rating has been elevated from 'A' to 'AA', marking a notable improvement in its sustainability and governance practices. This upgrade reflects the company's commitment to incorporating ESG principles into its business operations and strategy.

Significance of the Upgrade

The ESG rating upgrade is particularly significant in today's business environment, where investors and stakeholders increasingly consider sustainability factors in their decision-making processes. An 'AA' rating from MSCI, a respected name in ESG assessments, may position SBI Cards favorably in the eyes of environmentally and socially conscious investors.

Transparency and Disclosure

In line with its commitment to transparency, SBI Cards has made this information readily available to the public. Investors and other interested parties can access details about the ESG rating on the company's official website at www.sbicard.com .

Regulatory Compliance

The company has also ensured compliance with regulatory requirements by promptly informing the stock exchanges about this development. As per the LODR data, SBI Cards notified both the BSE Limited and the National Stock Exchange of India Limited on November 7, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Announcement

This ESG rating upgrade underscores SBI Cards' ongoing efforts to enhance its sustainability practices and corporate governance standards. As ESG factors continue to gain prominence in the financial world, such improvements may contribute positively to the company's reputation and potentially influence investor perceptions.

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.