SBI Cards Appoints Smt. Parvathy Vairava Sundaram as Independent Director

Key Highlights

SBI Cards and Payment Services Limited has appointed Smt. Parvathy Vairava Sundaram as an Independent Director.
The appointment is for a term of three years, effective from April 21, 2023.
This decision was made at the company's Board of Directors meeting held on April 21, 2023.

About the Appointment

SBI Cards and Payment Services Limited, a leading credit card issuer in India, has strengthened its board with the addition of Smt. Parvathy Vairava Sundaram as an Independent Director. This appointment comes as part of the company's ongoing efforts to enhance its corporate governance and bring diverse perspectives to its leadership.

Terms of Appointment

Duration: The appointment is for a term of three years.
Effective Date: April 21, 2023
Position: Independent Director

Significance of the Appointment

The addition of Smt. Parvathy Vairava Sundaram to the board as an Independent Director is expected to bring fresh insights and expertise to SBI Cards. Independent directors play a crucial role in maintaining transparency, providing unbiased opinions, and ensuring that the interests of all stakeholders are considered in decision-making processes.

About SBI Cards and Payment Services Limited

SBI Cards and Payment Services Limited is a non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients. As a subsidiary of the State Bank of India, the company leverages its parent's strong brand value and extensive distribution network to maintain its position as one of the leading credit card issuers in the country.

Conclusion

The appointment of Smt. Parvathy Vairava Sundaram as an Independent Director for a three-year term reflects SBI Cards and Payment Services Limited's focus on strengthening its corporate governance. As the company continues to navigate the dynamic credit card and digital payments landscape in India, the diverse perspectives brought by its board members will be crucial in shaping its future strategies.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.22%	+0.25%	+0.29%	-8.76%	+26.17%	+6.07%

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:

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.
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).
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.
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:

Metric	FY 2025	FY 2024
Total Assets	65,546.00	58,171.00
Total Income (net of finance cost)	15,459.00	14,888.00
Profit After Tax (PAT)	1,916.00	2,408.00
Gross NPA	3.08%	2.76%
Return on Assets (RoA)	3.10%	4.60%

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.