Q3 2025 SBI Cards and Payment Services Ltd Earnings Call Transcript
Key Points
- SBI Cards and Payment Services Ltd (BOM:543066) achieved a significant milestone by surpassing the INR2 crore cards in force mark, reflecting an expanding customer base and market presence.
- The company reported a 10% year-on-year growth in retail spends, indicating strong consumer engagement.
- SBI Cards has launched a hyper-personalization platform to enhance customer lifetime value through personalized engagement, which is expected to drive future growth.
- The company maintained a stable cost of funds at 7.4%, providing a solid foundation for financial stability.
- SBI Cards continues to focus on ESG initiatives, maintaining an A rating from MSCI and a low-risk category rating from Sustainalytics, demonstrating a commitment to sustainability.
- Profit after tax for the quarter was INR383 crores, a 30% decrease year-on-year, indicating financial pressure.
- The gross credit cost increased by 40 basis points to 9.4%, reflecting challenges in managing credit risk.
- The company's GNPA remained stable at 3.24%, suggesting persistent asset quality issues.
- There is a continued stress in the unsecured portfolio, with defaults remaining elevated in the credit card industry.
- The company anticipates a slower growth rate in receivables, projecting a 12% to 15% growth for the next year, which is lower than previous growth rates.
Ladies and gentlemen, good day, and welcome to the SBI Cards and Payment Services Limited Q3 FY25 earnings conference call. (Operator Instructions) I now hand the conference over to Mr. Abhijit Chakravorty, MD, and CEO, SBI Cards. Thank you, and over to you, sir.
Thank you, Rao. Good evening, everyone. I'm pleased to welcome you to the earnings call along with my senior management team. Projections indicate that digital economy will account for 20% of GDP by 2026 and exceed [USD1 trillion] by 2028. UPI transactions, for example, saw an 8% month-on-month increase in volume to [INR16.73 billion] in December 2024. The highest volume for the digital system since it became operational in April 2016.
As per the RBI December 2024 data, credit card spends have grown to INR1.88 lakh crore in value terms with transaction values exceeding INR1.14 trillion on e-commerce platforms. This trend further highlights the increasing
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