SBICARD Reports Robust Growth in New Accounts and Spends for Q1 FY26-27

SBI Cards and Payment Services Limited (SBICARD) has disclosed its investor presentation for the quarter ended June 30, 2026 (Q1 FY26-27). The presentation details strong operational performance, marked by a substantial increase in new credit card accounts and broad-based growth in retail spends. These figures were accompanied by a healthy rise in profitability and improved asset quality metrics.

Key highlights

• New accounts grew by 17% year-on-year (YoY), reaching 10.23 lakh in Q1 FY26-27.
• Total spends recorded a 27% YoY increase, amounting to ₹118,475 crore for the quarter.
• Profit After Tax (PAT) rose by 20% YoY to ₹664 crore.
• Gross Non-Performing Assets (GNPA) improved, decreasing by 102 basis points (bps) YoY to 2.04%.
• The Capital Adequacy Ratio (CAR) stood at 25.6%, up by 242 bps YoY.

What drove it

SBICARD indicated that its performance was driven by the sourcing of over 1 million new accounts during the quarter. The company also noted that retail spends exhibited broad-based growth across various categories. Receivables expanded by approximately 3% YoY, with 'Interest Bearing & Non-Earning Assets' (IBNEA) constituting about 55% of overall receivables.

Context

The 17% YoY growth in new accounts for Q1 FY26-27 marks an acceleration compared to the 13% YoY growth reported in the investor presentation for the quarter ended March 31, 2026 (Q4 FY25-26). This trend suggests continued momentum in customer acquisition for the company.

Why it matters

The substantial growth in new accounts and overall spends demonstrates SBICARD's continued expansion in the Indian credit card market. The improvements in asset quality, evidenced by the reduction in both Gross and Net Non-Performing Assets, signal effective risk management. A robust Capital Adequacy Ratio further enhances the company's financial stability and capacity for future growth.

What to watch

Future investor presentations will provide further insights into sustained growth rates for new accounts and spends. The trajectory of asset quality metrics will also be closely monitored, alongside the cost-to-income ratio, which saw an increase during the reported quarter. (Source: Exchange filing)