SBI Cards to raise Rs 5,000 crore via NCDs; board OKs private placement of securities

SBI Cards will soon hit the NCD market to raise up to Rs 5,000 crore.

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26 Aug, 2025 12:21

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SBI Cards and Payment Services Ltd said on September 18 it will raise Rs 5,000 crore via issue of non-convertible debentures (NCD). The cards and payment company's board approved the private placement of securities in one or more tranches, it said in a filing to stock exchanges.

"The Board of Directors of the Company, at its meeting held today, has, inter alia, approved raising of funds by way of issuance of Non-Convertible Debentures (NCDs) aggregating to Rs. 5,000 Crores in one or more tranches, on private placement basis," said the filing.

Earlier last week, SBI Cards had intimated that the company's board would meet on September 18 to consider the fund raising.

SBI Cards share price fell 1.4 percent on Wednesday to Rs 781.35 in the afternoon trade. The company's market capitalisation is about Rs 74,250 crore per the latest share price.

The stock has given muted returns, rising only about 2 percent so far this year since January. This has lagged far behind benchmark NSE Nifty 50, which has gained about 17 percent during this period.

SBI Cards posted a marginal 0.2 percent year-on-year rise in net profit to Rs 594.5 crore for Q1 FY25, compared to Rs 593.3 crore in the same period last year. Revenue from operations grew 11.4 percent to Rs 4,358.6 crore from Rs 3,911.9 crore.

The number of cards-in-force rose 11 percent year-on-year to 1.92 crore, though new account openings fell to 9.04 lakh from 10.97 lakh. Consumer spending increased by 4 percent year-on-year to Rs 77,129 crore, while receivables surged 22 percent to Rs 52,705 crore.