SBI Cards and Payment Services Ltd (NSE: SBICARD) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Salila Pande — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Mahrukh Adajania — Analyst
Aditya Vikram — Analyst
Jignesh Shial — Analyst
Ansh Viswanathan — Analyst
Nitin Agarwal — Analyst
Kaitav Shah — Analyst
Anuj Singla — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the SBI Cards and Payment Services Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your Touchstone phone. I now hand the conference over to Ms. Salila Pandey, MD, and CEO, SBI Cards. Thank you. And over to you, Ms. Salila Pandey.
Salila Pande — Managing Director and Chief Executive Officer
Thank you Sagar Good evening to everyone joining us on the call today as we present Q3 FY26 financial results, I would like to extend a warm welcome on behalf of the Board and the management team at sbicad. Amid the ongoing geopolitical uncertainties, India continues to demonstrate remarkable resilience and sustained momentum. The GDP currently valued at 4.18 trillion, India is firmly on track to become the world’s third largest economy. GDP is projected to reach 7.3 trillion by 2030, underscoring the scale of growth opportunities ahead. This growth is underpinned by a sustained upward trajectory in domestic demand driven by supportive tax reforms, robust consumer demand and structural improvements under gsg.
Many such factors have collaboratively strengthened consumption across both discretionary and non discretionary categories. Over the past few years, India’s digital payments ecosystem has evolved rapidly with strong support from the government and key stakeholders across the industry. Specifically talking about the credit card industry, as per the RBI data, credit card spends up to December 2025 was 17.67 lakh crore rupees, 13.5% higher than a year earlier, while credit card transaction volume increased by 26.5% to about 4.4 billion during the same period. Overall, digital payments are now firmly embedded in consumer behavior, with transactions becoming quicker, lower in ticket size, higher in frequency and increasingly integrated with credit as the credit landscape continues to evolve and improve.
SBI cart, as a customer centric and agile organization, views these developments as opportunities to drive sustainable growth and deliver consistent financial performance. Our growth remains anchored in delivering seamless customer journeys, offering personalized awards and offering best in class products that meet the evolving needs of our customers. During the quarter, we rolled out various customer centric initiatives including the launch of Khushia Unlimited, our integrated multilingual nationwide festive campaign featuring over 1,250 offers from leading brands across more than 2,950 cities. We continue to form strategic partnerships with leading players including Amazon, Flipkart and Apple to enrich customers shopping experience.
We were a key partner with Apple for the newly launched iPhone 17 to drive spend and customer engagement Coming to Business performance Our robust business model and disciplined portfolio management, balancing customer engagement and prudent risk management have enabled us to deliver strong results during the quarter. The outcome validates the impact of our focused approach including recent tech driven initiatives such as Hyper Personalization and strengthening of early warning digital models. Let me share some key metrics. Cards and force have grown to around 2 crore 18 lakh with 8% YoY growth. We added 8 64,000 new accounts while continuing to focus on quality.
Acquisition sourcing from OpenMarket and Bangkok were 56 versus 44% respectively as per the RBI December 2025 data. SBI Card continues to be India’s second largest credit card issuer with cards enforce market share at 18.8%. While this quarter’s acquisitions were moderate, over the next few quarters we aim to acquire around 900,000 to 1 million new accounts every quarter with focus on quality and premium accounts. This will be done with an oversight on risk and asset quality to ensure sustainable, well balanced growth. As for the spend, as per RBI December 2025 data as Penn’s market share has further grown to 17.7% in FY26 Pence during the quarter reached the highest ever level of 1:14,700.
operator
Sorry to interrupt team. The line for the management has been dropped. Please stay connected while we reconnect the line for the management. Ladies and gentlemen, we have the line for the management reconnected. Please go ahead ma’.
Salila Pande — Managing Director and Chief Executive Officer
Am. Thank you Sagar. So coming back to the spends, retail spends reached 91,962 crore witnessing a 14% YoY growth. We have seen good growth across most POS and online spend categories. Online spends witnessed strong growth across all non discretionary and discretionary categories. Online spends contributed around 62.1% of the total retail spends during the nine months of FY26. As a result of a continued focus on diversification of use cases. Corporate spins witnessed strong growth and reached 22,739 crore during the quarter. We continue to benefit from the UPI on credit card linkage. Driven by its festive season, UPI on credit card usage continued to gain momentum witnessing further 20% growth for majorly in department stores, groceries, utilities, fuel, apparel and restaurants.
Let me now share few key metrics of our financial performance. Revenue from operations reached 5127 crore witnessing 11% growth yy. Revenue has been higher mainly due to higher spend based income. Profit after tax was 557 crore witnessing 45% growth YoY mainly driven by improved gross credit cost and lower cost of funds. Operating cost during the quarter was higher due to higher corporate passback driven by increase in corporate spends. We have also recognized a one time increase in gratuity and leave and cashmere expense for the past services amounting to 12 crore rupees primarily arising due to change in definition of eligible wages as per the recently communicated revised labor Code, the cost to income ratio for the quarter was 56.8%.
Receivables during the quarter reached 57,213 crore with almost 4% growth YoY. The high interest earning assets were at 56% with revolver rate at 23%. This is due to the higher transaction volume leading to higher repayment post the festive period. As has been the case in the previous years, the higher average transactor volume also impacted the yield for the quarter which was 16.3% versus 16.5% in the previous quarter. With revolver balances on a downward bias, we are focusing on prioritizing growth in our EMI portfolio to expand interest bearing asset and drive more predictable revenue streams. Our tie ups with merchants, OEMs and partners are also aimed towards this initiative.
The cost of funds on a daily weighted Average basis for Q3 was lower by 5 basis points Quarter over quarter. The benefit from repo rate cuts on our floating book have been mostly absorbed. The cost of funds is expected to remain stable at current levels. From here on, the net interest margin for the quarter was 11% versus 11.2% during Q2. As regards asset quality over the last few quarters, our actions on underwriting, portfolio management and collections have helped us improve the asset quality giving us a better portfolio mix, lower NPAs and lower credit cost. Gross credit cost has improved from 9% during the previous quarter to 8.3% mainly contributed by lower gross write offs.
Gross NPA for the quarter remained flat at 2.86%. However, the NPA stock has reduced by 67 crores quarter over quarter and 140 crores year over year to 1638 crores. Stage 2 balance which is portfolio at significant increase in credit risk has also reduced by 246 crore quarter over quarter and 844 crore year over year to 2,239 crore. The lower NEA and lower stage 2 and stage 3 stock resulted in a write back of 121 crore of provision as per the ECL model. However, the same has been retained and thus the company is carrying an additional provision of 121crores as at the end of the quarter.
With lower stage two and Stage three stock, there is an improvement in the slippage ratio as well. Quarter over quarter. As we had mentioned in our last earnings call, the gross credit cost is on a downward trend with adequate provisioning, lower delinquent stocks and continued momentum on both portfolio management and collections. Our portfolio today reflects a stronger profile as regards liquidity and capital adequacy. Our liquidity position continues to be strong. Our capital adequacy ratio was at a Strong level of 24.4%. ROA for the quarter was 3.2% higher. 79 basis points year over year. ROE for the quarter was 14.7% higher by 322 basis points year over year.
To conclude, amidst a dynamic environment supported by a wide set of coordinated strategic interventions, the company has delivered robust results for the quarter and for the nine months of FY26. We remain focused on further strengthening our risk management framework, moderating credit costs and maintaining healthy asset quality to ensure long term robustness and resilience. The performance reinforces our confidence that we are on the right path. Looking ahead. We intend to scale up our business in a calibrated manner to ensure stronger and sustainable profitable growth for the long term. With that, we are now open for questions.
Thank you.
operator
Thank you very much. We will now begin with a question and answer session. Anyone who wishes to ask a question may press STAR and then one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Maru Adjania from Nuama. Please go ahead.
Mahrukh Adajania — Analyst
Yeah, good evening. I. Sorry, I did not catch it properly. You said that there has been a release of 121crores which you have not written back. So it would have been written back in. The gross credit cost is. It means the provisions would have declined by 121 crores. Is that what you meant?
Salila Pande — Managing Director and Chief Executive Officer
So that’s right. Maruk number one. The provisions would have declined by 121 crore. The gross credit cost would have declined and also the profits would have been higher. By approximately the same amount had we written it back.
Mahrukh Adajania — Analyst
Okay. But since you already have been tightening over the years your provisioning policy, why did you not choose to write this back?
Salila Pande — Managing Director and Chief Executive Officer
For two reasons, that we are hopeful that in the coming days we will be able to grow the receivables towards which we are working. And number two, we normally we do an annual review of our risk models as well. In the past we have seen there has been some volatility in the gross credit cost and the profit numbers. Then we have seen some variance because of the different variation in the stocks, variation in the receivable numbers. So to reduce that volatility, we thought that, that we’ll wait for now till we are done with the model refresh and we’ll take a call after that.
The model refresh is in the fourth quarter. We normally do it annually.
Mahrukh Adajania — Analyst
Okay.
Salila Pande — Managing Director and Chief Executive Officer
Yeah, but it will be now in the fourth quarter, right? Like in the last quarter of the year.
Mahrukh Adajania — Analyst
Right. Okay. And my other question is on growth. So obviously there’s a festival base and all lenders have seen a decline in AUM, right. Or in receivables and everyone seen like a 5 to 7% decline. And so have you. But I mean, what’s the real reason? Of course there’s a festival days but receivable growth looks very anemic through the sector. Is it that the credit cards are losing share to other payment products? How do we view this on a structural basis and what is the guidance on AUM growth now? Because we are already at 5% year on year.
So what would be the guidance? When would we reach mid teens or early teens? So that’s my other question.
Salila Pande — Managing Director and Chief Executive Officer
So Marav, on your second question on the AUM growth, first of all a. It is not a structural issue. The reason primarily is that our. If you look at the retail payments and the transactions, both are growing consistently. In fact, it’s the other way around. If you look at the spends, growth on retail, which is at around 15% or so is lagging the transaction growth. That means customers are using the card for even low value transactions and it is becoming more ingrained in their lifestyle. So there is no issue on that side. On the asset side, because there are, as was being stated, the asset has three parts transactor asset, revolver asset and the installment asset.
Transactor asset can keep on varying on a month to month basis depending on the seasonality. And one doesn’t that it keeps going up and down. But on a year on year basis you will see some trend lines there. One festival here and there. Otherwise as of now the revolver asset is where we see is either stable or no growth is happening there. And we have been very cautious there. And we have been stating that over the last five to six quarters that we are, we have tightened our new customer acquisition and we have been more selective there.
We would want the credit cost to want to come down and for that reason the overall as what we see that the revolving asset has a slightly downward bias. And as Mnim mentioned in her opening remarks, we are going to focus on what is in our control primarily which is on the installment asset which is growing. So the new sale of installment asset actually is growing higher than the retail spends which is a very good trend because the new the customers who are spending are converting more of their spends into assets. So spend to lend is going stronger.
So these are the trends as of now as we see the credit costs come down to the levels where it is comfortable and we are okay with it. Incremental or marginal customers can be always looked at. So just to supplement what Girish mentioned, Madhav, we will continue to grow but the growth will be sustainable. We ultimately have to ultimately the customer as well as the business that we do has to be profitable. So we are having a calibrated approach. But this is something that we will continue to do that we are not going to grow recklessly. We will grow where we see merit and where we see value.
Mahrukh Adajania — Analyst
Okay, thank you so much. Thank you.
Salila Pande — Managing Director and Chief Executive Officer
Thank you.
operator
Thank you. The next question comes from the line of Aditya Vikram from BB Securities Private Limited. Please go ahead.
Aditya Vikram — Analyst
Hi. Thank you so much for taking my questions. After a very long period of time we are seeing some really good numbers. I think you answered how the receiver is right. What are the trends looking like? Right. Is these trends increasing or are we going to focus more on the EMI assets? Because if I look at your presentation right, what I see is that the Q1Q growth about the retail spend is not very significant. So just wanted your thoughts for some qualitative commentary on that. That’s the first question. The second one which I wanted to really understand is that you mentioned in your initial remarks that it was about four quarters back when you were growing at 1.1 million or almost 1 million customers every quarter and you said you will go back to that.
So what happens? What is your assessment again on the side of the quality? Do we have so many customers? When you see the group increasing on the same path going forward or you will be more aggressive in terms of acquiring new customers? Thank you.
Salila Pande — Managing Director and Chief Executive Officer
So If I got your first question correctly, it was about spends where you said that the spend has been lower than what the growth has not been significant. See there, there’s a little bit of a seasonality in the previous quarter and there was to some extent where we saw spend happening because of the festive season as well as uptick because of the GST rationalization which happened in the last quarter. But I would say that we see consistency and in terms of the spends, also we are seeing a good growth happening. Quality of spend is also improving and spends per card, if you look at the investor presentation, has also improved.
So that gives us the comfort that in fact last year, what I understand that the festivals were there for the two days in Q2, whereas this time the festival season started almost 10 days earlier, before the end of Q2. So there was a spend spillover which happened in the last quarter as well as this quarter. So both the quarters had a respectable spend growth. Number two in terms of. I would stick to what I said earlier, that we will grow, we see ample opportunity, but the growth we have, we will continue to see where is the value.
The business and customer profile should be valuable and profitable for the company as well. So we will continue to grow. We are very hopeful with the kind of initiatives that we are taking that once we start seeing much more abatement in the asset quality, we will go to the next level. But as of now, also it’s not that we will not grow. We will continue to grow and have a consistent growth in terms of the customer acquisition.
Aditya Vikram — Analyst
So just to follow up on that, ma’, am, you said 1 million customers is what you’re looking at, right? Get that clear, right?
Salila Pande — Managing Director and Chief Executive Officer
We will be able to acquire 1 million customers by having aggressive strategy. But at the same point of time, they will be more sustainable with less risk of any sort of a stage two, stage three, kind of a category. That’s what you’re trying to say. Baseline. Okay.
Aditya Vikram — Analyst
Okay. Thank you very much. Thank you very much again after a very long period of time, a very good quarter. So I hope it sustains and continues. Congrats to you and your management.
Salila Pande — Managing Director and Chief Executive Officer
Thank you. Azit.
operator
Thank you. The next question comes from the line of Dao Xin Xuan from Sean Field. Please go ahead.
Unidentified Participant
Hi. Firstly, on the margins, given that we’re going over going for quality and we talk about revolver assets of downward bias, where and when do you see the margin bottoming out or how should we think about the margin going forward?
Salila Pande — Managing Director and Chief Executive Officer
So on the margin there are two elements. The first one is on the yield. So I will talk first on the yield. We see a slight downward trend on the yield and primarily the reason here is that the, as I was stating earlier that the revolving asset percentage will have a slight downward trend at least for next 2 to 4 quarters, 2 to 3 quarters. So given that we will have a downward trend on the yield at this stage, cost of funds I will let will remain stable. At this point in time it doesn’t look like there’s going to be another rate cut. If it happens, obviously we will get the benefit of that. But just adding on to what Girish was saying, the yield on the portfolio definitely looks like on a downward trend, cost of funds at the most will remain stable if it doesn’t start to go up. Because as the expectation of a rate cut has disappeared, you have seen that in quarter four, in January, this, this month, the short end and both the long end have moved up on the rates.
But on a near to medium term I would say the margin will shrink towards the second half of the year. I just want to add to that. Ultimately we are talking about the overall profitability of India. So the idea is how do we optimize the profits so that we have the right optimal margins and also ensure that the riskiness of the customer is to the extent there we are not seeing substantial losses. So that is the idea and we will continue to ensure that the margins remain stable within the profile that we want in terms of the customers.
Unidentified Participant
Got it. Just on the growth, you know, we talk about going back to 10 kind of new customer run rate which you know, seems to be suggesting your cuts in force is going to be growing at say 9, 10%, you know, which has been the case for past couple quarters. So you know, with your spends car growth at 10%, banks growth at 15% we have seen your receivable growth 70%. Now it’s 5. So what part of the math could go up? So how do we get back to that 10, 15% receivable growth with let’s say is that doable? With 910x customer acquisition.
Salila Pande — Managing Director and Chief Executive Officer
It is doable. There are multiple levers for doing that. So it is not only that if the cards grow then only the asset will grow because asset per customer also there is an opportunity to grow at this stage because it is also about the kind of risk and return ratio that you are looking at. So as of now what we are doing here is. And what we are looking at is that we are being more as ma’ am said, we are being calibrated we are being fairly selective. So we will look at this. There is no dearth of customers.
We can always look at certain specific segments and go slightly deeper and build assets there. So those opportunities are there in front of us. We will go to them at the right time when the comfort with the credit quality is there with us.
Unidentified Participant
Cool. So I just asked one question. On the other income it went from, you know, 171, 160 odd crore usually it went to 2, 6 crores this quarter. What’s the jump about?
Salila Pande — Managing Director and Chief Executive Officer
Yeah, there is a. In fact we’ve made a disclosure in the exchange filing. There is a release of one of the provisions that we were carrying and 50 crores of that release has gone into the other income. You can actually read the exchange. This project has details on the and the provision release.
Unidentified Participant
Thank you so much.
operator
Thank you. The next question comes from the line of Rohan M from Equi Es Securities. Please go ahead.
Unidentified Participant
Good evening team. Thanks for the opportunity. On the ECL model changes that we have done. If you would highlight what was the exact changes that led to the release?
Salila Pande — Managing Director and Chief Executive Officer
No, no. So we didn’t make any changes to the model. It’s just that we as we keep on saying that we refresh the data. When we get one new quarter of data then we drop one quarter from the old in the overall model. And that is the only thing we did. If you look at the investor presentation you will see that actually because of that the provision rates have actually increased. The reason why there was an ECL release is that to stop in stage two, stage three as well as stage one have gone down. So because of that basically the overall ECL declined.
But we decided to have a management overlay there and retain those provisions.
Unidentified Participant
Sure. And one of the competitors in the recent CQ results indicated that they will have two more quarters of pain in credit cards where slippers may likely remain elevated. So anything that we want to comment upon on till when this elevated slippage and credit cost can continue.
Salila Pande — Managing Director and Chief Executive Officer
So we continue to see a downward trend as we have been mentioning because the kind of slippages we are seeing, the kind of roll rates we are seeing, the reduction in the stock we are seeing. And this has been because the company has been working on improving the asset quality for many quarters now. So we are seeing the benefit we don’t expect looking at the numbers today that there will be any elevation in terms of the stress in the portfolio.
Unidentified Participant
Sure. And the total spend in the category three has jumped sharply in nine months. So is it primarily the corporate cards or like what is driving the jump? Almost. No.
Salila Pande — Managing Director and Chief Executive Officer
So that data is completely your retail data. There is no element of corporate development. I come to the category, I’ll just explain the category. So in the category three there is travel agents, hotel, airlines and railways. So what we have seen is in the travel segment and entertainment segment there is a jump up on the online spends.
Unidentified Participant
Okay, fine. And lastly, if you look at the OPEX growth has been almost 21% in the nine months and income growth is 12%. So from an operating jobs perspective going into FY27, like how should one think on that?
Salila Pande — Managing Director and Chief Executive Officer
So while you’re talking about the overall OPEX growth and the growth. Yeah. Going into next year, there are, there will be two elements which will be should be looked at. One is that we have as of now we are directly indicating 900,000 to 1 million cards a quarter. So however, if during the year we want to increase the number of cards or increase the acquisition, that will be incremental cost over this year. So that is a, that’s actually comes at a as a opex, but it is an investment into the future for a company perspective.
So that is one. The second part is also about the corporate card spends. We always stated that the market is at anywhere between 20 to 20, 25%. And in this quarter we are now finally around 19 20% of the overall corporate spend as an overall retail spend. So we would want it to be broadly in this space. So from this quarter, whatever you see as a corporate card spend, it will not, we do not want it to as a percentage terms go further than that. So that is so these are the two broad trend lines that you will see as a differential this year or next year.
Unidentified Participant
And lastly, the Tire 1 ratio should jump this quarter. What is the rationale for that?
Salila Pande — Managing Director and Chief Executive Officer
Profit. Profit up to the quarter. Yeah, Q and Q. There’s a jumping tire one ratio. That’s because see both the risk weighted assets are declined slightly and the profits have been. Profits have been added to the both the numerator and the denominator impact is.
Unidentified Participant
Sure. Okay, thank you.
operator
Thank you. The next question comes from the line of Jigneshial from Ambit. Please go ahead.
Jignesh Shial — Analyst
Yeah, hi AM audible. Yes, yes, thanks for the opportunity. I have three questions. First of all, this quarter we had seen the new account addition had seen a kind of a decline. Whereas we are talking about adding up 1 million accounts each quarter gradually. So can you give some color of which are the customer base that will be focused? Because you’re talking about, you know, being selective and Conservative. So what kind of which I mean which geographies or which kind of a customer customer base. If you can give some throw some light on that, that will be helpful.
That’s my first question.
Salila Pande — Managing Director and Chief Executive Officer
Okay, to answer your question, the first question. This quarter we were as per our estimates we were close to around 30 to 50,000 cards shorter as per in achieving our target we would like to compensate for that in this quarter. So we try to keep stay between 900 to 1 million. But whatever 30, 40, 50,000 we felt short of in last quarter, we want to compensate for it in this quarter. Ideally we would want our banker contribution to be around 50 to 55% and the balance coming from the open market. As you have seen we have in the last quarter we have tied up with three large players.
So we have a co brand with Indigo, we have done a co brand with Flipkart and we have a co brand with Phonepe and Tata Neo. So these are large digital co brands. Strategically we would want to on the open market go do work with as many large digital partners so that we can get the customers from there where you get the spending. Customers who have a value proposition which they like. From the banker side we have already integrated with Yono 1 and now with Yono 2. You would have recently seen the launch of Yono 2 and Internet banking.
This is the primary focus area where we want to give a seamless end to end digital experience to customer. So these are the areas where we are focusing. It is not about a geography or a particular segment or obviously we government salaried is one of the best customer segments and we continue to be strong in that particular segment. But from a customer psychographics and demographic perspective we would want to go as much digital because it is not only about acquiring the customer, it is also about activating him, keeping him engaged with us and for a long period of time.
So looking at all those parameters this is the way that we are looking at acquiring our customers.
Jignesh Shial — Analyst
That sounds great, thank you. Second question is now is on opex. So now obviously we had seen a kind of moderation and growth and obviously gradually we are talking about acquiring more customers obviously through digital mode and all. How do you see our current cost to income is somewhere around 56% kind of number and also we are talking about doing more co branded credit cards across. So what trajectory are we seeing on the OPEX run? And cost to income from cost to average assets front. Can you give some color on that?
Salila Pande — Managing Director and Chief Executive Officer
So cost to income. We anyway have indicated that for the year we should be in the 55 to 57% range. And the reason why we gave that guidance out was because you were expecting.
operator
Ladies and gentlemen, the line for the management has been dropped. Please stay connected while we reconnect the line for the management. Ladies and gentlemen, we have the line for the management reconnected. Yes ma’, am, Please go ahead.
Salila Pande — Managing Director and Chief Executive Officer
I was saying that we had given a guidance for a 5557 because we were obviously expecting a higher corporate spend this year given the growth that you’ve seen there and we maintained that for this year. I think on the other in general on the opex, how would it look like for the next year? Girish has already given an indication that as we grow the number of cards per quarter, once we get back to that number it will obviously impact the OPEX numbers. I think corporate spend we are at about 20 odd percent of our overall spend.
We will maintain that ratio. So in terms of year on year that won’t really be that big a delta in the cost to income ratio. But as we continue to grow the number of cards that will definitely impact cost to income.
Jignesh Shial — Analyst
So we should see world range inching up. Is that a fair assumption?
Salila Pande — Managing Director and Chief Executive Officer
I would still say should be in the same range of 55 to 57 next year.
Jignesh Shial — Analyst
Understood. And final third question is on your credit cost. So right now it is 8.3. Obviously if you adjust for 121 crores provision release it would have been even lesser. So any broad trajectory that we are thinking about that I understand that credit card generally means cyclical business but since MD ma’ am is talking about bringing up more stability in overall earnings and all. So any broader range that is there, what we are thinking about in case of credit cost for next say next two to three years kind of horizon, how do we see that one?
Salila Pande — Managing Director and Chief Executive Officer
As I have been mentioning earlier as well Jignesh, it’s a very long period for a credit card portfolio right now to speak about. But the intent is and the numbers reflect very clearly that we will continue to work on reducing the overall graph credit cost going forward and you will definitely see improvement in the coming quarters.
Jignesh Shial — Analyst
There is no broader range that or any levels that you think we should be settling at 6%, 7% kind of number or nothing right now in the.
Salila Pande — Managing Director and Chief Executive Officer
Horizon as of now see I will not commit on 6.6.5 but as you have known in the past we have seen those numbers and once we reach definitely we will be very comfortable.
Jignesh Shial — Analyst
Understood. That’s really helpful ma’ am and thank you and all the best. Thanks.
operator
Thank you. The next question comes from the line of Pranuj Shah from 3P Investment Managers. Please go ahead.
Unidentified Participant
Hi. Thank you for taking my question. Most of them have been answered. Just a couple of clarifications. One is could you give the breakup between salary and self employed between your new sourcing and creq?
Salila Pande — Managing Director and Chief Executive Officer
So for this quarter, new acquisitions, it’s 72% salary. 72 salary. Yes.
Unidentified Participant
Okay. Okay, got it. And second is as a clarification I think in note 11 you mentioned that some mandated contributions to PIDF have been reversed from a liability of 70 crores. So could you give the context around that? What is that around?
Salila Pande — Managing Director and Chief Executive Officer
So very briefly there was a RBI requirement to contribute to the payment Infrastructure Development fund. And for that we had been building the provisions. We did pay out after a certain period to RBI and we received regulatory confirmation that the regulator will not be collecting it for the period July 24 to June 2025. And therefore that provision has been revealed.
Unidentified Participant
Okay. But nothing about the continuity of that scheme beyond December 25.
Salila Pande — Managing Director and Chief Executive Officer
The scheme anyway ended in December, on December 31, 2025. So up till June we have released the provision.
Unidentified Participant
Okay, got it. Thank you.
operator
Thank you. The next question comes from the line of print engineer from cnsa. Please go ahead.
Unidentified Participant
Yeah. Hi team. Thanks for taking my question. Most have been asked just firstly on the cost of funds increasing 10bps QoQ. That’s just mathematical. Because last quarter of the end of period borrowing effect.
Salila Pande — Managing Director and Chief Executive Officer
That’s right. The numbers that you see are on a four point average and because the last quarter’s number was higher which is why you see that kind of a trend on a daily weighted average, which is what has been also shared and disclosed in the document. Our cost of funds has come down by 5 basis points this quarter.
Unidentified Participant
Got it. And Rashmi also mentioned that cost of funds should be stable unless we see another rate cut. But the December rate cut benefit should still come in, right? Or are you seeing that offset because people rates have gone up?
Salila Pande — Managing Director and Chief Executive Officer
I was hoping as well that the benefit should come in. But look at the rate on both the short end and the long end of the curve. They’ve only gone up.
Unidentified Participant
Okay. Okay. So broadly cost of fund should be here.
Salila Pande — Managing Director and Chief Executive Officer
That’s right.
Unidentified Participant
Got it. And secondly, is the industry and you all taking any, you know, further cost cutting measures to alleviate the top line pressure? Because this revolver pressure is there for everyone, not just you all, any, any measures in terms of reducing cashbacks and reward points and or maybe so sourcing fees, etcetera.
Salila Pande — Managing Director and Chief Executive Officer
Nothing specific, but this is a part of the overall regimen that we continue to review our offerings, our value prop. And wherever we feel that the CBA is not holding out even in the long run, we keep on taking those measures. So nothing in particular.
Unidentified Participant
Got it. Okay. Yeah, that’s it from my end. Thanks and wish you all the best. Thank you.
operator
Thank you. Your next question comes from the line of Ansh Kimwat from Capital One. Please go ahead.
Ansh Viswanathan — Analyst
Hello.
Salila Pande — Managing Director and Chief Executive Officer
Yes.
Ansh Viswanathan — Analyst
Hi. I just wanted to ask regarding the. Regarding the other operating expense which has been largely under 2000 crore bank for the last two quarters. Now is it mainly. Is it mainly concerning the corporate strength or is there any other delta to it? Because we’ve grown from around 1400 crores to around 2000 crores in the last five quarters.
Salila Pande — Managing Director and Chief Executive Officer
Your question is on the other operating. Other operating expenses. Just give me a moment please. So this is. This includes all the expenses around the cashback, corporate passback, sales, the acquisition cost, all of that.
Ansh Viswanathan — Analyst
Okay. So should we also.
Salila Pande — Managing Director and Chief Executive Officer
The question is that should we also. Link it to the corporate spends in any way then if correct should also increase. So as we said that corporate spend this quarter were at about 20 odd percent of our overall spend. We would like to maintain that at that ratio. So in terms of the rate, you should now see a stable rate quarter on.
Ansh Viswanathan — Analyst
Okay. This 2000 crore should be the update for the coming quarter.
Salila Pande — Managing Director and Chief Executive Officer
Set the another. Yeah. There are three elements of cost in this customer acquisition cost, the cash back and the offers that we do in the market. And the third part is the corporate passback plus the customer value prop. Benefit utilization. So it has these four elements into it. So there. There will be some amount of variation depending on offer and season. But some of the things are fairly stable. So for example value proposition cost is fairly stable. Customer acquisition costs are because we are running at this point in last two, three quarters is fairly stable.
Ansh Viswanathan — Analyst
Okay. Okay. All right. Thank you.
operator
Thank you. The next question comes from the line of Nitin Agarwal from Motilal Oswal. Please go ahead.
Nitin Agarwal — Analyst
Good evening and congrats on a good quarter. Hello. Am I audible?
Salila Pande — Managing Director and Chief Executive Officer
Thank you. Thank you, Nathan.
Nitin Agarwal — Analyst
Thank you.
Unidentified Participant
Thank you. So one question is around the credit cost. So when we look at the credit. Cost which has come down from 9% to 8.3, it’s a quite a good decline we are seeing. But can you also share some color on how much this is as a percentage of retail loan? The reason I’m asking is because while there is this has declined but the mix of corporate Spends also has increased from 6% to 20% in past one year. And retail loans like I believe is like a major cause of this credit cost. So how should one look at this entire equation in entirety?
Salila Pande — Managing Director and Chief Executive Officer
So we don’t have any delinquency in our corporate portfolio. Whatever credit cost is reflected in terms of the write off relates to all retail loans only in the past as well as as of the current quarter.
Unidentified Participant
So then what will be the percentage of say retail loans last year versus what is it now so as to like make a better sense of this trade cost number?
Salila Pande — Managing Director and Chief Executive Officer
No, no. So even in the asset there is no, there is hardly any corporate. Corporate asset is not more than 150 to 250 crores balance. Everything is retail.
Nitin Agarwal — Analyst
Okay, okay, great. That’s good to know. And secondly, within the retail corporate spend mix, how should one look at this going forward? The corporate has been going at a very rapid pace. And so where do you want this mix to be over the coming year or in the short term?
Salila Pande — Managing Director and Chief Executive Officer
Nitin, it’s growing at a slightly higher pace right now because we had lost some grounds in the last year. The idea as Girish mentioned earlier is that we will try to maintain a mix of having around 20% of the contribution coming from the corporate side spend side going forward.
Nitin Agarwal — Analyst
Okay? Okay, got it. Thank you so much. I wish you all the best.
Salila Pande — Managing Director and Chief Executive Officer
Thank you.
operator
Thank you. The next question comes from the line of Kaitoff Shah from Anandrati. Please go ahead.
Kaitav Shah — Analyst
Hello, good evening. Congratulations on good set of numbers. Can you explain the sharp increase in the capital adequacy?
Salila Pande — Managing Director and Chief Executive Officer
So capital adequacy one is that accretion of profits has happened and then the risk weighted assets have declined as compared to the previous quarter. Both the things have impacted. Other than that there’s nothing significant there.
Kaitav Shah — Analyst
Okay, sure. And second question, broadly on outlook for growth over the medium term, is there some chance. It’s a reiteration of earlier questions. But how do you see this panning out over the medium term? Do you see growth moving up to the double digit level? So when you talk of medium term, how long are you talking about?
Salila Pande — Managing Director and Chief Executive Officer
Two to three years. Definitely that will be the intent and we see a tremendous opportunity and definitely we’ll work towards it.
Kaitav Shah — Analyst
Thank you so much.
operator
Thank you. The next question comes from the line of MD Mahesh from Kotak Securities. Please go ahead.
Unidentified Participant
Just a couple of questions ma’. Am. On the first one, the credit cards, just quantitatively, when you are now looking at elections from the backlog book, is there an improvement coming in because customers are not getting access to better funds. Because we also see personal loans kind of disbursements picking up. Is it access to credit which is leading to better recovery? Is it incomes leading to better recoveries? If you could just kind of give us some color or is it lower settlement that you’re doing as compared to what you used to do earlier? What is driving the credit cost decline? So credit cost decline? I would say collections. We would be happy to see even better collections happening. As you mentioned, we don’t think that it’s happening as customers getting access to other credits. We have also basically increased the intensity of our collections. They’ve become more efficient, enhance the resources and those are the things which are reaping benefits for us in terms of the customers who are already delinquent. Apart from that, as we keep on mentioning that, since we are more vigilant in terms of the acquisition, in terms of the portfolio management, we are seeing lower slippages as well.
So that is also benefiting us. But I would not say that it’s happening because of people getting access to credit from somewhere else. I don’t think it’s working like that right now. That is not. Okay, perfect. And this confirmation, if you now looking at the Forward flows into 30 to 63 to 90, has that also started to drop down meaningfully and are you seeing some pullbacks as well? How should we look at this number as we go forward?
Salila Pande — Managing Director and Chief Executive Officer
Sorry, I didn’t get you. You’re saying it’s dropping means.
Unidentified Participant
Is the power flow from 30 to 60, 60 to 90, is that also starting to fall off and is there a pullback from the 60 to 90 back to 1 to 30 how you think those trends as well?
Salila Pande — Managing Director and Chief Executive Officer
So both are happening. We are seeing abatement in terms of the roll forward as well as pullbacks are also happening.
Unidentified Participant
And if that logic holds, should we assume a meaningful reduction in credit cost based on what we have said so far?
Salila Pande — Managing Director and Chief Executive Officer
See Mahesh, that’s the intent. But what we have seen in the it’s such a volatile industry, we are working towards it, we are hopeful and we look forward to it.
Unidentified Participant
Okay, last one question. When you’re using some of these platforms. Third party applications for when you say rupee credit cards, does the MBR for you at a net seven remain the same or do you as an issuer have to pay some cost to the to these apps as well?
Salila Pande — Managing Director and Chief Executive Officer
So you’re right, Mahesh, we get interchange. However, in the whole this upicc there is two more extra entities which is called a TSP and a PSP which is payment service provider and technical service provider as per NPCI guidelines. They also get some share of the overall mdr. And this goes out of yours or it goes out of the. From the acquirer side or from the issuer side. They’re trying to understand that. So they have done some adjustment earlier it was acquirer share and issuer share. So some, some part of it goes from the acquirer, some part goes from the issuer.
Unidentified Participant
Okay. Because Your number shows 1.2% on the broad side. But I can’t see the next number though.
Salila Pande — Managing Director and Chief Executive Officer
Yeah. Because issuer share is slightly higher.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. The next question comes from the line of Anuj Singla from JP Morgan. Please go ahead.
Anuj Singla — Analyst
Yeah, good evening. Thanks for the opportunity. So, a couple of questions. Firstly, we have. We have been seeing a consistent decline in the revolver share. And I think in the past couple of calls Girish has mentioned that for the newly acquired customers the proportion of revolver is much lower. Can you give us some sense on what that quantum is versus where we are versus the current 23%. Where can it settle down over a period of time?
Salila Pande — Managing Director and Chief Executive Officer
Anuj, we don’t disclose those numbers vintage wise. But again, yes, to Girish’s point, yes, we are seeing a downward bias in terms of the new acquisition, which is intuitively also correct because we are slightly more conservative in terms of the new acquisitions. So we are seeing lower revolvers in the new vintages.
Anuj Singla — Analyst
Okay. So I think the. During early part of the call, Girish also mentioned this can continue for the next couple of quarters and then settle down. Did I hear it correctly? And what gives you the confidence? Was it with regard to the revolver share that.
Salila Pande — Managing Director and Chief Executive Officer
No, no, no, Anuj, so let me clarify. What I said said was that we will continue to run the track that we are running today for till the time we see the credit cost come down under control fully. Okay. Once that happens, we can always. Because there is no depth of customers and applicants, we have, in fact, in the last three quarters there has been a consistent increase in number of applications that we are receiving. Okay. We can always look at certain segments, certain other categories which we are today not looking at and look at some pilots in those scenarios.
Anuj Singla — Analyst
Okay.
Salila Pande — Managing Director and Chief Executive Officer
So those experimentation, we will look at the right time as of now for next two quarters. This is. The track that we are running.
Anuj Singla — Analyst
Got it, Got it. Pretty clear. And secondly, so what we have seen is that the spend growth is still good on the retail side. You mentioned 14% number. But when we look at the asset growth, it’s a bit more depressed. Ideally these should two numbers should converge at some point of time. Do you see that scenario panning out in 27 or 28? If you can just give us some guidance on some hand holding there, that will be helpful. Thank you.
Salila Pande — Managing Director and Chief Executive Officer
Asset growth will lag. Spends growth in next year, at least for next year. Overall. In the portfolio also as we’ve been seeing that, we see more customers also more aware and becoming more of transactors. So as we start building up in terms of the portfolio, in terms of the new cards and the spend start going, ultimately they will culminate into asset growth.
Anuj Singla — Analyst
Anut. Sir, does that answer your question?
Unidentified Participant
Hello. Hello.
Salila Pande — Managing Director and Chief Executive Officer
Yeah.
operator
So you have any further questions? All right, we’ll move on to the next question. Our next question comes from the line of Gaurav from mlp. Please go ahead.
Unidentified Participant
Yeah, hi, good evening. Thanks for taking my question. I have three questions. First one, just a clarification. The other income includes 70 crore reversal of PIDF. The contribution to PIDF which has. Which we have reversed. So that was taken in this quarter. Is that correct? Of the 70 we’ve taken 50 in other income and 20 was reversed from the 51 was taken on the other income and 20 was 19 was reversed from the other expenses.
Salila Pande — Managing Director and Chief Executive Officer
Sure, sure. Got it, Got it. So the P L impact came in this quarter. Secondly, on the ECL provision you mentioned about 121 crore of excess. So the ECL disclosed in one of your slides of 1989 crore, does that include 121 or that’s excluding the 121 including 120. Sure. So but if I remove the 121 the PCR would have dropped because the breakdown of ECL that you have disclosed in the charts that would have otherwise reduced the pcr. Yeah, I got off in pcr. Whatever percentage we have disclosed, we have made a footnote on that that it is excluding this 121. So whatever the ECL is through, we are doing that. All right. So this 121 is over and above the ECL provision that you provided on stage. Stage one, two and three. See you have this talk. If you just multiply and subtract, you’ll get 121.
Unidentified Participant
Sure, sure. Absolutely. Got it. The next question is. Sorry, I missed the earlier part of the call. So have you given any guidance for FY20, FY26, FY27, asset growth, receivables growth? Sorry, no.
Salila Pande — Managing Director and Chief Executive Officer
No, we haven’t given this time. We have not given any guidance.
Anuj Singla — Analyst
Okay, so your earlier guidance of 10 to 12% now that the asset growth has actually fallen to 4.5%, does that stay the 10 to 12 for this year?
Salila Pande — Managing Director and Chief Executive Officer
So we are see, we have said 10 to 12 initially in the early earnings call. But looking at the numbers and the way the portfolio mix has changed as of now we are refraining from giving any guidance because the portfolio doesn’t reflect that kind of a growth might happen in terms of 10 to 12%.
Anuj Singla — Analyst
Sure, sure.
Salila Pande — Managing Director and Chief Executive Officer
As I mentioned earlier also that ultimately asset growth or any customer acquisition ultimately should culminate in better profitability. So the idea is to continue to work with the appropriate risk return and see that we give consistent returns in terms of the profits and profitability.
Unidentified Participant
Understood? Sure. And finally on the OPEX we’ve given a guidance of 55 to 57. If I look at the comment that the net card or the gross card addition in this quarter was 868.50k and the target is not 900k to 1 million incrementally. If I look at, you know, NIM has an NIM on a full year basis should be higher next year versus this year. So is it fair to assume that the OPEX to income would be at the lower end of your guidance or like this year it will be at the higher end of the guidance.
How should we look at cost to income from next year given that the Broadcard edition will also not expand?
Salila Pande — Managing Director and Chief Executive Officer
We haven’t given any guidance for FY27 as of now. All the discussions happen. We will obviously give some, you know, indications around FY27 in the next call. So this 55 to 57 is for this year. So.
Salila Pande — Managing Director and Chief Executive Officer
Yeah.
Anuj Singla — Analyst
Sure, sure. Thank you so much. That’s all for myself.
operator
Thank you. The next question comes from the line of Sukrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead.
Unidentified Participant
Good evening to the team. I have two forward looking questions. The first question is with consumer spending patterns evolving and competition in the credit card space intensifying, how is SBICard defining its customer acquisition portfolio mix and co branding partnerships to drive sustainable growth? In this context, how are you balancing growth in spends and card infos with prudent underwriting and long term asset quality? That’s my first question. I’ll ask the second question after this. Thank you.
Salila Pande — Managing Director and Chief Executive Officer
Great, that’s. I would say you’ve asked everything. So ultimately the numbers will reflect competition is there but there’s tremendous potential as well in this market and we feel that there’s A great opportunity. We have our strengths, give us enough levers to ensure that we continue to grow sustainably, profitably, consistently. We are the singlest, single largest pure play credit card issuer which gives us a lot of focus in this area. We have very strong co brand partnerships to grow. Number three, we have a strong banker partnership as well with SBI which gives us another very big opportunity to continue to grow the credit card portfolio.
And one thing which we continue to do is that we will continue to evaluate, assess, take action basis what we are seeing in the market, what we are seeing in the portfolio and we are very confident that we will continue to give sustainable results going forward as well.
Unidentified Participant
My second question is to regards to finance. Given the recent moderation in asset quality metrics and continued investments in customer acquisition and rewards, how are you thinking about margin sustainability and credit credit cost normalization over the coming quarters? Additionally, what guiding principles are shaping capital allocation and risk management as the business navigates a changing consumption and interest rate environment? Thank you.
Salila Pande — Managing Director and Chief Executive Officer
I think my first question should have answered your next question. But the thing is that yes. As. Regards competition, sustainable growth, improving, I would say that we keep on looking at our portfolio. Wherever we see merit, wherever we see opportunity, value for the company, we will continue to invest there. You are right. Moderation in asset quality metrics is happening but we would like to see it improve further and this is something that we will continue to work on as well going forward.
Unidentified Participant
Thank you and best of luck for the next quarter.
Salila Pande — Managing Director and Chief Executive Officer
Thank you so much.
operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to Ms. Salila Pandey for closing comments.
Salila Pande — Managing Director and Chief Executive Officer
Thank you. Sagar. I would like to extend my sincere thanks to our shareholders, customers, partners, employees and to everyone who has joined us today for their continued trust, support and confidence in our company. With that, thank you once again for your time and participation. Have a good evening.
operator
Thank you. On behalf of SBI Cards and Payment Services limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.