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SBICARD 3QFY26 RU Edited
28 January 2026
3QFY26 Results Update | Sector: Financials
SBI Cards
Estimate change (down) CMP: INR785 TP: INR875 (+11%) Neutral
TP change (down) In-line quarter; credit costs show signs of easing
Rating change
NIMs contract 20bp QoQ
Bloomberg SBICARD IN SBI Cards (SBICARD) reported a 3QFY26 PAT of INR5.6b (up 45% YoY/ 25%
Equity Shares (m) 952 QoQ, in line).
M.Cap.(INRb)/(USDb) 883.9 / 10.1
52-Week Range (INR) 1027 / 660 NIMs contracted 20bp QoQ to 11%, as most of the benefit from the lower
1, 6, 12 Rel. Per (%) 2/-6/25 cost of funds has already been realized, while yields carry a mild near-term
12M Avg Val (INR M) 1140 downside bias, which could keep margins under check.
Opex grew 23% YoY/5% QoQ (3% higher than MOFSLe), amid the labor code
Financials & Valuations (INR b) impact of INR120m.
Y/E MARCH FY25 FY26E FY27E
Credit cost stood at 8.3% (there was a write-back of INR1.21b, which was
NII 58.9 68.3 76.3
OP 74.5 79.1 89.1 not realized in P&L; otherwise, this would have reduced credit costs by an
NP 19.2 21.3 30.4 additional 50-60bp on a calculated basis).
NIM (%) 11.0 11.8 11.9 Spends growth stood healthy at 33% YoY/7% QoQ, led by robust growth in
EPS (INR) 20.1 22.4 32.0 corporate spends (up 329% YoY/30% QoQ). Retail spends rose 14%
EPS Gr. (%) (20.6) 11.2 42.7
BV/Sh. (INR) 145 164 194 YoY/2.6% QoQ. The company expects corporate : retail spends to be at
ABV/Sh. (INR) 139 159 188 20% : 80%.
Ratios GNPA ratio increased 1bp QoQ to 2.86%, while NNPA ratio declined 1bp
RoA (%) 3.1 3.1 3.8 QoQ to 1.28%. ECL declined 6bp QoQ to 3.3%, while PCR rose 64bp QoQ to
RoE (%) 14.8 14.5 17.9
Valuations 56.1%.
P/E(X) 39.0 35.0 24.6 We reduce our earnings estimates by 4%/6.5% for FY26/FY27, considering
P/BV (X) 5.4 4.8 4.1 a contraction in margins and a decline in receivables, while credit costs are
P/ABV (X) 5.6 4.9 4.2 likely to witness a modest decline. We expect SBICARD to post an
RoA/RoE of 3.85%/17.9% by FY27. Reiterate Neutral with a revised TP of
Shareholding Pattern (%)
As On INR875 (24x Sep’27E EPS).Sep-25 Jun-25 Sep-24
Promoter 68.6 68.6 68.6 Loan growth tepid; revolver mix to remain subdued
DII 17.8 17.5 16.8
3Q PAT was up 45% YoY/up 25% QoQ at INR5.6b (in line), aided by in-line
FII 10.1 10.2 9.2
Others 3.6 3.7 5.5 NII as well as in-line provisions.
FII includes depository receipts NII grew 11.5% YoY/1.2% QoQ to INR17.5b (in line). NIMs contracted 20bp
QoQ at 11% and are expected to remain curtailed, led by a steady CoF and
slight negative bias in yields.
The transactor mix stood stable at 44% (amid higher transactor volume),
while revolve mix remained at 23% (management expects the revolve rate
to remain under check). The EMI mix stood stable at 34%.
Other income grew 19% YoY/6.4% QoQ, and the bank witnessed a PIDF
reversal of INR510m, while INR190m was adjusted against opex. C/I ratio,
thus, stood flat QoQ at 56.8%.
CIF grew 8% YoY/1.4% QoQ to 21.8m. New card sourcing stood at 864k,
although lower vs the aspiration of 0.9-1m. About 56% of the sourcing was
from the open market in 3QFY26.
Spends witnessed strong growth of 33% YoY/7% QoQ, led by corporate
spends (up 329% YoY/30% QoQ), while retail spends grew slower at 14%
YoY/3% QoQ. Amid higher transactors, spends grew healthy while
receivables declined 4%.
Nitin Aggarwal - Research Analyst ([email protected])
Research Analyst: Dixit Sankharva ([email protected]) | Disha Singhal ([email protected])
Investors are advised to refer through important disclosures made at the last page of the Research Report.
14 January 2020 1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and
S&P Capital.
SBI Cards
GNPA ratio increased 1bp QoQ to 2.86%, while NNPA ratio declined 1bp
QoQ to 1.28%. ECL declined 6bp QoQ to 3.3%, while PCR rose 64bp QoQ to
56.1%.
Highlights from the management commentary
The company witnessed a reversal of provisions of INR1.21b; however, the same
has not been written back in P&L in 3QFY26.
C/I ratio is guided to remain within the 55–57% range, supported by higher
spend levels in the current year. Next year, opex may rise moderately as the
card base expands.
NIMs are influenced by two factors: 1) yields, which are witnessing a gradual
decline due to a lower share of revolving balances, and 2) cost of funds, which is
expected to remain stable in the absence of rate cuts.
Corporate spends accounted for 20% of total spends and are expected to
maintain a similar mix going forward.
Valuation and view
SBICARD reported a mixed performance in 3Q, marked by lower provisions and an
improving credit cost outlook, even as receivables declined due to a higher
transactor mix. Credit costs stood at 8.3% (which would have been lower by ~50–
60bp had the INR1.21b write-back been realized in P&L), with the trajectory turning
more favorable going forward. NIMs are expected to remain under pressure as
yields carry a negative bias, while the cost of funds is likely to stay range-bound.
Corporate spends, which supported growth during the quarter, are expected to be
maintained at around 20% of the overall mix. Asset quality is anticipated to improve
further, aided by lower forward flows and a supportive macro environment. We
reduce our earnings estimates by 4%/6.5% for FY26/FY27, considering a
contraction in margins and a decline in receivables, while credit costs are likely to
witness a modest decline. We expect SBICARD to post an RoA/RoE of 3.85%/17.9%
by FY27E. Reiterate Neutral with a revised TP of INR875 (24x Sep’27E EPS).
Quarterly performance (INR b)
FY25 FY26E FY25 FY26E FY26E V/s our
1Q 2Q 3Q 4Q 1Q 2Q 3QA 4QE 3QE Est
Net Interest Income 14.8 15.0 15.7 16.2 16.8 17.3 17.5 16.7 58.9 68.3 17.9 -2%
% Change (Y-o-Y) 19.7 15.8 13.2 14.5 13.8 15.2 11.5 3.1 14.4 16.0 13.7
Other Income 22.4 22.7 23.7 24.2 25.4 26.5 28.2 28.6 95.7 108.7 27.2 4%
Total Income 37.2 37.7 39.4 40.4 42.2 43.8 45.7 45.3 154.6 177.0 45.0 1%
Operating Expenses 18.2 20.1 21.1 20.7 21.2 24.8 26.0 25.9 80.1 97.9 25.2 3%
Operating Profit 19.0 17.6 18.3 19.6 21.0 18.9 19.7 19.4 74.5 79.1 19.9 -1%
% Change (Y-o-Y) 25.4 13.3 13.0 7.2 10.5 7.7 7.7 -1.0 14.3 6.1 8.6
Provisions 11.0 12.1 13.1 12.5 13.5 12.9 12.2 11.7 48.7 50.4 12.6 -3%
Profit before Tax 8.0 5.5 5.2 7.2 7.5 6.0 7.5 7.7 25.8 28.7 7.3 3%
Tax 2.0 1.4 1.3 1.8 1.9 1.6 1.9 2.0 6.6 7.4 1.9 4%
Net Profit 5.9 4.0 3.8 5.3 5.6 4.4 5.6 5.7 19.2 21.3 5.4 3%
% Change (Y-o-Y) 0.2 -32.9 -30.2 -19.4 -6.5 10.0 45.2 7.4 -20.4 11.2 41.0
Operating Parameters
Loan (INRb) 508.1 536.0 528.1 539.3 546.3 578.6 552.2 579.8 539.3 579.8 569.6
Loan Growth (%) 21.5 23.0 12.0 9.9 7.5 7.9 4.6 7.5 9.9 7.5 7.9
Borrowings (INRb) 408.7 432.2 439.1 449.5 461.8 492.3 462.2 484.1 449.5 484.1 468.5
Borrowing Growth (%) 24.0 26.8 15.5 12.7 13.0 13.9 5.3 7.7 12.7 7.7 7
Asset Quality
Gross NPA (%) 3.1 3.3 3.2 3.1 3.1 2.9 2.9 2.8 3.1 2.7 3.1
Net NPA (%) 1.1 1.2 1.2 1.5 1.4 1.3 1.3 1.2 1.4 1.2 1.3
28 January 2026 2
SBI Cards
PCR (%) 64.4 64.4 64.4 53.5 54.3 55.4 56.1 57.0 53.5 57.0 56.3
Source: Company, MOFSL
Quarterly snapshot
FY25 FY26 Change (%)
Profit and Loss (INR b) 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY QoQ
Interest Income 22.4 22.9 24.0 24.2 24.9 24.9 25.4 6 2
Interest Expenses 7.7 7.9 8.3 8.0 8.1 7.6 7.9 -5 3
Net Interest Income 14.8 15.0 15.7 16.2 16.8 17.3 17.5 12 1
Other Income 22.4 22.7 23.7 24.2 25.4 26.5 28.2 19 6
Fee Income 19.3 19.6 20.2 20.9 21.9 22.7 23.7 17 4
Others 3.1 3.1 3.4 3.2 3.5 3.8 4.5 31 18
Total Income 37.2 37.7 39.4 40.4 42.2 43.8 45.7 16 4
Operating Expenses 18.2 20.1 21.1 20.7 21.2 24.8 26.0 23 5
Employee 1.3 1.5 1.5 1.5 1.6 1.6 1.8 21 17
Others 16.8 18.6 19.5 19.2 19.6 23.3 24.1 23 4
Operating Profits 19.0 17.6 18.3 19.6 21.0 18.9 19.7 8 4
Provisions 11.0 12.1 13.1 12.5 13.5 12.9 12.2 -7 -5
PBT 8.0 5.5 5.2 7.2 7.5 6.0 7.5 45 25
Taxes 2.0 1.4 1.3 1.8 1.9 1.6 1.9 43 24
PAT 5.9 4.0 3.8 5.3 5.6 4.4 5.6 45 25
Balance Sheet
Loans 508.1 536.0 528.1 539.3 546.3 578.6 552.2 5 -5
Borrowings 408.7 432.2 439.1 449.5 461.8 492.3 462.2 5 -6
Receivable Mix (%)
Transactor 38.0 40.0 40.0 41.0 40.0 44.0 44.0 400 0
Revolver 24.0 23.0 24.0 24.0 24.0 22.0 22.5 -150 50
EMI 38.0 37.0 36.0 35.0 36.0 34.0 33.5 -250 -50
Asset Quality (INR b)
GNPA 16.1 18.2 17.7 17.2 17.4 17.1 16.4 -8 -4
NNPA 5.7 6.5 6.3 8.0 7.9 7.6 7.2 14 -5
Asset Quality Ratios (%) 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY (bp) QoQ (bp)
GNPA 3.06 3.27 3.24 3.08 3.07 2.85 2.86 -38 1
NNPA 1.11 1.19 1.18 1.46 1.42 1.29 1.28 10 -1
PCR (Calc.) 64.4 64.4 64.4 53.5 54.3 55.4 56.1 -829 66
Credit Cost 8.7 9.0 9.9 9.2 9.9 8.9 8.9 -109 -9
ECL 3.6 3.6 3.6 3.4 3.5 3.3 3.3 -30 0
Business Ratios (%)
Fees to Total Income 51.9 51.9 51.4 51.8 51.9 51.8 51.8 39 4
Cost to Income 48.9 53.4 53.5 51.4 50.3 56.8 56.8 334 9
Sourcing channel Mix (%)
SBI 42.0 38.0 55.0 63.0 56.0 50.0 44.0 -1,100 -600
Open Market 58.0 62.0 45.0 37.0 44.0 50.0 56.0 1,100 600
Spend Mix (%)
Corporate Spends 6.8 6.7 6.2 9.8 11.6 16.3 19.8 1,367 352
Retail Spends 93.2 93.3 93.8 90.2 88.4 83.7 80.2 -1,367 -352
Profitability Ratios (%)
Yield on loans 16.8 16.4 16.5 17.0 17.0 16.5 16.3 -20 -20
Cost of borrowings 7.5 7.4 7.4 7.2 7.1 6.4 6.5 -90 10
Spreads 9.3 9.0 9.1 9.8 9.9 10.1 9.8 70 -30
Margins 10.9 10.6 10.6 11.2 11.2 11.2 11.0 40 -20
RoA 4.1 2.7 2.4 3.4 3.4 2.6 3.2 80 60
RoE 19.1 12.5 11.5 15.5 15.8 12.1 14.7 320 260
Other Details Change (%)
New accounts added (000) 904 904 1,175 1,109 873 936 864 -26 -8
O/S Cards (Mn) 19.2 19.6 20.2 20.8 21.2 21.5 21.8 8 1
Spends (INRb) 771.3 818.9 860.9 883.7 932.4 1,070.6 1,147.0 33 7
- Retail Spends (INRb) 718.8 764.0 807.9 797.1 824.0 896.1 919.6 14 3
- Corporate Spends (INRb) 52.5 55.0 53.0 86.6 108.4 174.5 227.4 329 30
-Spends market share (%) 15.9 15.8 15.6 15.6 16.6 16.8 17.7 210 90
28 January 2026 3
SBI Cards
-O/S cards market share (%) 18.5 18.5 18.7 18.9 19.1 19.0 18.8 10 -20
Source: Company, MOFSL
Highlights from the management commentary
Opening Remarks
India continues to progress towards becoming the world’s third-largest
economy, with GDP currently at USD4.18t.
Industry-wide credit card spends reached INR17.67t, while transaction volumes
grew 26% YoY.
The company continues to enter strategic partnerships with leading brands; a
recent partnership with Apple (iPhone 17) helped drive higher spends.
CIF increased 8% YoY, with sourcing split at 56% from open market and 44% via
bancassurance.
SBICARD remains the second-largest player, with a 17.7% market share in
spends and 18.8% CIF market share in 3QFY26.
Online transactions accounted for 62% of retail spends during the quarter, while
corporate spends recorded strong growth.
UPI-linked credit card usage grew 20% QoQ across key metrics.
Operating expenses rose, primarily due to higher corporate spends.
A one-time expense of INR120m was recognized in line with the new labor code
implementation.
A higher share of transactors impacted yields, which stood at 16.3% in 3QFY26.
CoF is expected to remain stable going forward.
Asset quality has improved over recent quarters, resulting in a healthier
portfolio mix; gross credit cost declined to 8.3% from 9%.
Lower Stage 2 and Stage 3 assets led to improved slippages.
Capital adequacy remained strong at 24.4%. RoA improved 79bp YoY and 59bp
QoQ to 3.2%, while RoE rose 322bp YoY and 262bp QoQ to 14.7%.
Credit Cost and ECL
The company has seen reversal of provisions of INR1.21b; however, the same
has not been written-back in P&L in 3QFY26.
Given the volatility in gross credit costs, management chose not to write back
provisions to smooth earnings.
The ECL release was driven by the adoption of new data, which led to a decline
in balances across Stage 1, 2, and 3, resulting in partial provision releases, while
management overlays were maintained.
The company remains focused on reducing gross credit costs over the coming
quarters, noting that credit costs had been as low as 6-7% in earlier years.
Collection efficiencies continue to improve, supported by increased collection
intensity.
For UPI-linked credit cards, two additional entities (TSCs and PSCs) are involved
and are required to receive their share of MDR.
Opex and Other Income related
The company targets card acquisitions of 0.9-1.0m per quarter; while this
elevates opex in the near term, it is viewed as a long-term investment. From 4Q
28 January 2026 4
SBI Cards
onwards, management does not expect a sharp rise in corporate-related
expenses.
C/I ratio is guided to remain within the 55–57% range, supported by higher
spend levels in the current year. Next year, opex may rise moderately as the
card base expands.
NIMs, Cost and Yields
NIMs are influenced by two factors: 1) yields, which are witnessing a gradual
decline due to a lower share of revolving balances, and 2) cost of funds, which is
expected to remain stable in the absence of rate cuts.
With yields stabilizing, management expects CoF to stay largely unchanged
going forward.
Spends; Loans and Receivables
AUM growth is not viewed as a structural concern, as retail payment volumes
and transaction counts continue to grow steadily. Spends growth of 15% trails
transaction growth, indicating increased usage of credit cards for smaller-ticket
transactions.
The company has tightened new customer acquisition to contain credit costs,
leading to a marginal downward bias in revolving balances. Focus remains on
installment-based assets, given the stickiness of revolvers. Growth will be
pursued selectively where opportunities exist.
The third quarter exhibits seasonality; however, spend quality has improved and
spends per card have increased.
SBICARD continues to see ample growth opportunities and plans to scale
through new initiatives.
Management is targeting customer acquisitions of ~1m per quarter going
forward.
While growth opportunities remain strong, the company will prioritize customer
quality in expansion.
Category-wise, online spends such as travel and entertainment witnessed a
notable uptick.
The company aims to add ~1m accounts per quarter, with bancassurance
contributing 50–55% and the balance from open market sourcing. New co-
branded partnerships have been launched to support customer acquisition.
Corporate spends accounted for 20% of total spends and are expected to
maintain a similar mix going forward.
New customer vintages are showing a lower revolving mix, a trend expected to
persist in coming quarters. While application volumes continue to rise,
underwriting standards remain selective.
Asset growth is expected to trail spend growth next year, as customers
increasingly act as transactors rather than revolvers.
Others
The company had earlier contributed to the PIDF and subsequently received
regulatory clarification that further payments were not required. Consequently,
PIDF contributions made between June 2024 and June 2025 were reversed,
28 January 2026 5
SBI Cards
totaling INR700m, of which INR510m was recognized under other income and
INR190m was adjusted against opex.
Capital adequacy improved further, supported by profit accretion and a
reduction in risk-weighted assets.
28 January 2026 6
SBI Cards
Story in charts
Exhibit 2: Mix of retail spending declined to 80% from 94% in
Exhibit 1: Spends increased 33.2% YoY (up 7.1% QoQ) 3QFY25, as corporate spends picked up pace
40.7 Spends (INRb)
YoY (%) Retail Spends (INRb) Corp Spends (INRb)
30.7 33.2
27.1 Retail Spends 9as3 a % o9f3 total 94 90 88
20.9 8778 8476 80
11.1 10.9
4.4 3.4
(11.1)
Exhibit 3: O/S cards increased ~7.9% YoY to 21.8m Exhibit 4: Margins contracted to 11% in 3QFY26
No of Cards (No in Mn) YoY (%) YoA (%) CoF (%) NIM (%)
11.3 11.3
20.9 11.2 11.2 11.2
16.4 11.0
10.9 10.9
12.5
11.0
9.5 9.2 10.1 10.4 9.7
7.9 10.6 10.6
Exhibit 5: Revolver mix stood at 23% amid higher
transactors Exhibit 6: New cards sourcing mix: SBI sourcing stood at 44%
Transactor Revolver EMI Open Market SBI Sourcing
38 38 37 38 37 36 35 36 34 34
37
49 51 45 4456 58 5062 56
22 23
24 23 24 24 23 24 24 24
55 6351 49 5644 42 5038 44
38 38 39 38 40 40 41 40 44 44
Exhibit 7: Credit cost declined to 8.3%; ECL flat at 3.3% Exhibit 8: GNPA ratio increased 1bp; NNPA ratio decreased
by 1bp QoQ; PCR increased to 56.1%
Credit Cost (%) ECL (%)
3.6 3.6 3.6 GNPA (%) NNPA (%) PCR (%) 64.1 64.1 64.9 64.4 64.4 64.4
3.5 3.5 3.5 53.5 54.3 55.4 56.1
3.4 3.4
3.3 3.3
Source: MOFSL, Company Source: MOFSL, Company
28 January 2026 7
2QFY24 6.7 2QFY24 2QFY24 17.9 2QFY24 791.6
3QFY24 7.5 3QFY24 3QFY24 18.5 3QFY24 968.6
4QFY24 7.6 4QFY24 4QFY24 18.9 4QFY24 796.5
1QFY25 8.5 1QFY25 1QFY25 19.2 1QFY25 771.3
2QFY25 9.0 2QFY25 2QFY25 19.6 2QFY25 818.9
3QFY25 9.4 3QFY25 3QFY25 20.2 3QFY25 860.9
4QFY25 9.0 4QFY25 4QFY25 20.8 4QFY25 883.7
1QFY26 9.6 1QFY26 1QFY26 21.2 1QFY26 932.4
2QFY26 9.0 2QFY26 2QFY26 21.5 2QFY26 1,070.6
3QFY26 8.3 3QFY26 3QFY26 21.8 3QFY26 1,147.0
2.4 16.8
2QFY24 2QFY24 2QFY24 614.5
0.9 7.1 2QFY24 177.2
2.6 17.2
3QFY24 3QFY24 3QFY24 735.2
1.0 7.6 3QFY24 233.4
2.8 16.7
4QFY24 4QFY24 4QFY24 691.9
1.0 7.4 4QFY24 104.6
3.1 16.8
1QFY25 1QFY25 1QFY25 718.8
1.1 7.5 1QFY25 52.5
3.3 16.4 764.0
2QFY25 2QFY25 2QFY25 2QFY25
1.2 7.4 55.0
3.2 16.5 807.9
3QFY25 3QFY25 3QFY25 3QFY25
1.2 7.4 53.0
3.1 17.0 797.1
4QFY25 4QFY25 4QFY25 4QFY25
1.5 7.2 86.6
3.1 17.0 824.0
1QFY26 1QFY26 1QFY26 1QFY26
1.4 7.1 108.4
2.9 16.5 896.1
2QFY26 2QFY26 2QFY26 2QFY26
1.3 6.4 174.5
2.9 16.3 919.6
3QFY26 3QFY26 3QFY26 3QFY26
1.3 6.5 227.4
SBI Cards
Valuation and view
SBICARD reported a mixed performance in 3Q, marked by lower provisions and
an improving credit cost outlook, even as receivables declined due to a higher
transactor mix.
Credit cost stood at 8.3% (which would have been lower by ~50–60bps had the
INR1.21b write-back been realized in P&L), with the trajectory turning more
favorable going forward.
NIMs are expected to remain under pressure as yields carry a negative bias,
while the cost of funds is likely to stay range-bound. Corporate spends, which
supported growth during the quarter, are expected to be maintained at around
20% of the overall mix.
Asset quality is anticipated to improve further, aided by lower forward flows and
a supportive macro environment.
We reduce our earnings estimates by 4%/6.5% for FY26/FY27, considering a
contraction in margins and a decline in receivable, while credit costs are likely
to witness a modest decline. We expect SBICARD to post an RoA/RoE of
3.85%/17.9% by FY27E. Reiterate Neutral with a revised TP of INR875 (24x
Sep’27E EPS).
Exhibit 9: We reduce our earnings estimate by 4%/6.5%/1.8% for FY26E/27E/28E
INR b Old Estimates New Estimates Change (%/bps)
FY26 FY27 FY28 FY26 FY27 FY28 FY26 FY27 FY28
Net Interest Income 70.0 80.4 94.0 68.3 76.3 90.2 -2.4 -5.1 -4.1
Other Income 106.9 125.3 147.0 108.7 125.7 147.5 1.7 0.3 0.3
Total Income 176.9 205.7 241.0 177.0 202.0 237.7 0.1 -1.8 -1.4
Operating Expenses 96.0 111.2 130.5 97.9 112.9 132.5 2.0 1.5 1.5
Operating Profits 80.9 94.5 110.5 79.1 89.1 105.2 -2.2 -5.7 -4.8
Provisions 51.1 50.8 57.3 50.4 48.3 52.9 -1.3 -5.0 -7.7
PBT 29.8 43.7 53.2 28.7 40.8 52.3 -3.9 -6.5 -1.8
Tax 7.7 11.1 13.6 7.4 10.4 13.3 -3.9 -6.5 -1.8
PAT 22.2 32.5 39.7 21.3 30.4 39.0 -3.9 -6.5 -1.8
Loans 594 681 795 580 664 775 -2.5 -2.5 -2.5
Margins (%) 11.9 12.2 12.3 11.8 11.9 12.1 -14 -33 -21
Credit Cost (%) 8.70 7.70 7.50 8.70 7.50 7.10 0 -20 -40
RoA (%) 3.17 4.07 4.28 3.06 3.85 4.25 -11 -23 -3
RoE (%) 15.0 18.9 19.3 14.5 17.9 19.3 -54 -102 -3
EPS 23 34 42 22 32 41 -3.9 -6.5 -1.8
BV 165 197 236 164 194 232 -0.5 -1.6 -1.6
ABV 160 192 231 159 188 227 -0.3 -2.0 -1.7
Source: Company, MOFSL
28 January 2026 8
SBI Cards
Exhibit 10: DuPont analysis – estimate return ratios to be broadly range-bound
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
Interest Income 15.1 14.9 14.7 14.2 13.8 14.0
Interest Expense 4.1 5.0 5.1 4.4 4.2 4.2
Net Interest Income 11.0 9.9 9.5 9.8 9.6 9.8
Fee Income 16.5 15.7 12.9 13.3 13.6 13.8
Trading and others 4.1 3.0 2.5 2.3 2.3 2.3
Non Interest income 20.5 18.8 15.5 15.6 15.9 16.1
Total Income 31.5 28.7 25.0 25.4 25.5 25.9
Operating Expenses 18.6 16.1 12.9 14.1 14.3 14.4
-Employee cost 1.4 1.1 1.0 1.0 1.0 1.0
-Others 17.2 15.0 12.0 13.1 13.3 13.5
Operating Profits 12.9 12.6 12.0 11.4 11.3 11.5
Provisions 5.4 6.3 7.9 7.2 6.1 5.8
PBT 7.6 6.2 4.2 4.1 5.2 5.7
Tax 1.9 1.6 1.1 1.1 1.3 1.5
RoA 5.6 4.6 3.1 3.1 3.8 4.3
Leverage (x) 4.6 4.7 4.8 4.7 4.6 4.5
RoE 25.7 22.0 14.8 14.5 17.9 19.3
28 January 2026 9
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Financials and valuations
Income Statement (INR b)
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
Interest Income 60.5 77.4 90.7 98.9 109.4 128.4
Interest Expense 16.5 26.0 31.8 30.6 33.1 38.2
Net Interest Income 44.0 51.5 58.9 68.3 76.3 90.2
-growth (%) 16.0 17.0 14.4 16.0 11.7 18.2
Non Interest Income 82.4 97.4 95.7 108.7 125.7 147.5
Total Income 126.4 148.9 154.6 177.0 202.0 237.7
-growth (%) 23.0 17.8 3.8 14.5 14.1 17.6
Operating Expenses 74.5 83.7 80.1 97.9 112.9 132.5
Pre Provision Profits 51.9 65.2 74.5 79.1 89.1 105.2
-growth (%) 17.2 25.6 14.3 6.1 12.7 18.1
Provisions (excl tax) 21.6 32.9 48.7 50.4 48.3 52.9
PBT 30.3 32.3 25.8 28.7 40.8 52.3
Tax 7.7 8.2 6.6 7.4 10.4 13.3
- Tax Rate (%) 25.5 25.5 25.7 25.7 25.5 25.5
PAT 22.6 24.1 19.2 21.3 30.4 39.0
-growth (%) 39.7 6.6 -20.4 11.2 42.7 28.1
Total Comprehensive Income 22.6 24.1 19.2 21.3 30.4 39.0
-growth (%) 38.7 6.7 -20.3 11.1 42.7 28.1
Balance Sheet
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
Share Capital 9.46 9.51 9.51 9.51 9.51 9.51
Reserves & Surplus 88.84 111.33 128.30 146.95 174.71 210.92
Net Worth 98.3 120.8 137.8 156.5 184.2 220.4
Borrowings 311.1 398.9 449.5 484.1 547.0 629.1
-growth (%) 35.4 28.2 12.7 7.7 13.0 15.0
Other Liabilities & Prov. 46.1 62.0 68.2 95.4 114.5 138.6
Total Liabilities 455.5 581.7 655.5 736.0 845.8 988.1
Current Assets 13.5 27.3 27.4 33.1 40.4 49.3
Investments 21.4 35.2 62.4 79.2 91.1 104.7
-growth (%) 64.9 64.5 77.2 27.0 15.0 15.0
Loans 393.6 490.8 539.3 579.8 663.9 775.4
-growth (%) 30.4 24.7 9.9 7.5 14.5 16.8
Fixed Assets 5.7 5.6 3.3 5.1 5.7 6.3
Other Assets 21.2 22.8 23.1 38.7 44.7 52.3
Total Assets 455.5 581.7 655.5 736.0 845.8 988.1
Asset Quality
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
GNPA (INR b) 9.6 14.0 17.2 16.2 19.9 19.6
NNPA (INR b) 3.5 4.9 8.0 7.0 7.8 6.7
GNPA Ratio 2.4 2.8 3.1 2.7 2.9 2.5
NNPA Ratio 0.9 1.0 1.4 1.2 1.2 0.9
Slippage Ratio 6.0 7.3 9.5 6.5 6.1 6.1
Credit Cost 6.0 7.2 9.1 8.7 7.5 7.1
PCR (Excl Tech. write off) 63.6 64.9 53.5 57.0 60.7 65.7
E: MOFSL Estimates
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Financials and valuations
Business Metrics
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
Total No of Cards (Nos in Mn) 16.8 18.9 20.8 23.9 28.0 32.6
Total spends (INR b) 2,625.0 3,295.9 3,334.8 3,901.7 4,643.0 5,478.8
Spends per card (INR k) 156.2 174.4 160.3 163.1 165.9 168.0
Loans per card (INR) 23 26 26 24 24 24
Fee income earned per card 3,931 4,320 3,848 3,880 3,838 3,876
Ratios
Y/E March FY23 FY24 FY25 FY26E FY27E FY28E
Yield & Cost Ratios (%)
Avg. Yield on loans 16.8 16.9 17.0 17.1 17.0 17.2
Avg. Cost of Borrowings 6.1 7.3 7.5 6.6 6.4 6.5
Interest Spread 10.7 9.6 9.5 10.5 10.6 10.7
Net Interest Margin 12.2 11.2 11.0 11.8 11.9 12.1
Capitalisation Ratios (%)
CAR 23.1 20.5 22.9 25.2 25.0 24.7
Tier I 20.4 16.5 17.5 18.4 18.9 19.2
CET 1 20.4 16.5 17.5 17.0 17.5 17.5
Tier II 2.7 4.0 5.4 6.9 6.2 5.5
Business ratios (%)
Cost/Assets 18.6 16.1 12.9 14.1 14.3 14.4
Cost/Total Income 58.9 56.2 51.8 55.3 55.9 55.7
Int. Expense/Int.Income 27.2 33.5 35.0 30.9 30.3 29.8
Other income/Total Income 65.2 65.4 61.9 61.4 62.2 62.1
Empl. Cost/Total Expense 7.5 6.8 7.4 6.9 6.9 6.7
Valuation
RoE 25.7 22.0 14.8 14.5 17.9 19.3
RoA 5.6 4.6 3.1 3.1 3.8 4.3
RoRWA 6.2 4.6 2.9 2.9 3.7 4.0
Book Value (INR) 104 127 145 164 194 232
-growth (%) 26.4 22.3 14.0 13.5 17.7 19.7
Price-BV (x) 7.6 6.2 5.4 4.8 4.1 3.4
Adjusted BV (INR) 101 123 139 159 188 227
Price-ABV (x) 7.7 6.4 5.6 4.9 4.2 3.5
EPS (INR) 23.9 25.4 20.1 22.4 32.0 41.0
-growth (%) 39.3 6.2 -20.6 11.2 42.7 28.1
Price-Earnings (x) 32.8 30.9 39.0 35.0 24.6 19.2
E: MOFSL Estimates
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
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SBI Cards
N O T E S
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Explanation of Investment Rating
Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National
Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for
its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of
Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of
associate entities of Motilal Oswal Financial Services Limited are available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or
derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are
completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL
may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com . Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can
have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg.
No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to
“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with
professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian
Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the
United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and
under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and
services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act
and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any
investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption
from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission
("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt
financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b)
are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional
investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .
In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL
write to [email protected].
Nainesh Rajani
Email: [email protected]
Contact: (+65) 8328 0276
.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of
the Research Report or date of the public appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall
have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
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SBI Cards
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from
other than said services.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any
way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures
and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All
such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not
treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to
any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an
offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation
that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make
their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment
by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in
this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not
be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not
suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures
of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject
to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its
associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as
a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed
therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or
in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,
where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to
observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any
of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
Email Id: [email protected], Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person Contact No. Email ID
Ms. Hemangi Date 022 40548000 / 022 67490600 [email protected]
Ms. Kumud Upadhyay 022 40548082 [email protected]
Mr. Ajay Menon 022 40548083 [email protected]
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to [email protected]. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
[email protected], for DP to [email protected].
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