SBI Cards and Payment Services Ltd's Q2 FY26 results

Net Profit and Revenue Growth: SBI Cards reported a strong financial quarter, with net profit increasing by 10% year-on-year (YoY) to ₹445 crore, up from ₹404 crore in Q2 FY25. Revenue also saw a solid rise of 12.2% YoY, reaching ₹4,960 crore. Total income for the quarter grew by 13% to ₹5,136 crore, driven by a 9% rise in interest income and a 16% increase in fees and commission income. Strong Business Expansion: The company saw robust growth in its customer base and transaction volumes. Cards-in-force grew 10% YoY to 2.15 crore, and new account additions rose to 936,000. Crucially, cardholder spends surged by 31% YoY to ₹1,07,063 crore, with receivables increasing 8% to ₹59,845 crore. This helped the company maintain its competitive position, holding a market share of 19.0% for cards-in-force and 17.0% for spends. Improved Asset Quality: Asset quality showed sequential improvement. The Gross Non-Performing Assets (GNPA) ratio declined to 2.85% from 3.07% in the previous quarter (and down from 3.27% a year ago). Similarly, Net NPA fell sequentially to 1.29% from 1.42%. However, the Net NPA was slightly higher compared to 1.19% in Q2 FY25. Key Financial Ratios: There was a slight moderation in profitability ratios compared to the previous year. Return on Average Assets (ROAA) stood at 2.6%, down from 2.7% in Q2 FY25, and Return on Average Equity (ROAE) was 12.1%, compared with 12.5% in the same period last year. The company, however, maintained a strong Capital Adequacy Ratio (CRAR) of 22.5%, well above the RBI's minimum requirement of 15%.