Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
SBI Cards and Payment Services Ltd (NSE: SBICARD) Q4 2026 Earnings Call dated Apr. 27, 2026
Corporate Participants:
Salila Pande — Managing Director and Chief Executive Officer
Girish Budhiraja — Chief Product and Marketing Officer
Rashmi Mohanty — Chief Financial Officer
Analysts:
Unidentified Participant
Piran Engineer — Analyst
Shubhranshu Mishra — Analyst
Anuj Singla — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to SBI Card and Payment Services Limited Q4 and FY26 earning conference call. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation. Conclude should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Salila Pandey, MD, and CEO SBI Cards thank you and over to you ma’. Am.
Salila Pande — Managing Director and Chief Executive Officer
Thank you. Danish A very good afternoon to everyone. On behalf of the board and management of sbicar, I would like to welcome and thank you for joining us today. I would like to extend our gratitude to all the stakeholders for their continued support and trust in the company. At SBA Card, we remain focused on supporting India’s rapidly evolving digital payment landscape while further reinforcing our position as India’s largest pure play credit card player. The Indian economy continues to demonstrate resilience despite ongoing geopolitical uncertainties.
With real GDP projected to grow at around 6.9% for the financial year 26:27 as per IMF, Indian economy is likely to remain a bright spot in an increasingly uncertain global environment with growth running at more than twice the global average, supported by strong underlying fundamentals. At the same time, some moderation may be seen due to elevated energy prices and external headwinds. As per the recently released government data, India’s retail inflation inched up to 3.4% year on year in March from 3.21% in February.
Over the past few years, India’s digital payments ecosystem has witnessed rapid transformation. Digital transactions are becoming an integral part of everyday payments, supported by growing digital infrastructure, supportive regulatory initiatives and a thriving fintech ecosystem. The shift has reshaped customer behavior with payments becoming more frequent, smaller in terms of ticket size and increasingly integrated with credit channels. Digital transactions have grown almost 11 times, but between 2021-2025 with UPI accounting for almost 80% of overall digital transactions.
Within this evolving payment landscape, credit cards continue to play a significant role facilitating a rewarding, simple, safe and seamless payments experience. According to RBI March 2026 data, credit card spends during the year grew roughly 12% year over year to 23.62 trillion. The number of cards in force have crossed 118.6 million during this period, reflecting continued adoption across India’s expanding base of aspirational customers. As an agile organization, we at SBICard recognize these opportunities and are committed to capitalizing on them to fuel growth.
We continue to strengthen our position as India’s largest pure play credit card player and second largest credit card issuer. As a customer centric organization, we are focused on delivering seamless customer journeys, differentiated product offerings and personalized experiences. Hyper personalization continues to be a key strategic lever for us. During the year we enhanced the data driven customer engagement capabilities helping enhance customer lifetime value through the SBI Card mobile app and digital channels.
Digital acquisition has gained momentum with SBI Card sprints. A growing share of new account acquisitions is now initiated digitally improving the speed and experience of customer onboarding journey. During the year we enhanced our product portfolio to meet evolving needs of aspirational and tech savvy customers. For instance, during the year we launched several co branded credit cards such as Tata New SBI Card, Flipkart SBI Card, Indigo SBI Card and Phonepe SBI Card Select. Hundreds of national and regional offers were rolled out across all key spend categories in partnership with reputed brands to increase spend and engagement.
One of the key priorities during the year was to control and reduce credit costs. Our focus remained on maintaining portfolio resilience while supporting sustainable growth. We augmented our risk management framework enhanced policies, procedures, models and analytical capabilities across areas including underwriting, portfolio management, collections, fraud, risk management and provisioning, while ensuring alignment with evolving regulatory expectations and industry best practices. We further strengthened our collections infrastructure, both digital and physical.
The focus was on encouraging customers to make timely repayments in case of a difficulty. We supported the customers with financial hardship tools. Technology investments in artificial intelligence and machine learning are playing a key role in transforming our product development and service delivery from optimizing internal processes, attaining insights into customer behavior and preferences, upskilling employee to risk management framework, among others. We are poised to harness full potential of these advancements in financial year 27.
Our ESG approach is based on four cornerstones of our commitment to a sustainable future social prosperity, building trust, impactful integrity and climate action. This financial year we also declared an interim dividend of 2 rupees 50 paisa per equity share, enhancing shareholder value as regards the business performance in Q4 and for the whole year, the results trajectory is well in line with what we had expected and conveyed during the year. Let me share some key metrics. As per RBI March 2026 data, we continue to be the second largest credit card issuer in the country with cards enforced market share of 18.6%.
During the quarter we added nine 17,000 new accounts while maintaining a strong focus on quality led acquisition. Our digital onboarding platform SBI Card Sprint continues to deliver encouraging results by enabling faster and seamless customer acquisition. In terms of the new sourcing mix, our share from Open Market and Bangkok channels in FY26 stands at 54% and 46% respectively. As per RBI’s 2026 data, our spends market share has further grown to 18.1% in financial year 26. Overall spends in Q4 FY26 exceeded 1.15 trillion with a strong 31% growth YoY.
During FY26 overall spends were 4.3 trillion, setting a new benchmark. Retail spends witnessed steady growth driven by rising adoption of digital payments and ongoing expansion of payment ecosystem. In Q4 of the FY26 retail spends reached 89,786 crores with 13% growth Y1. During FY26 retail spends reached the highest ever level of over 3.54 trillion with a 15% growth YoY. 30 day retail spend active rate continues to be healthy at over 52% in Q4 of FY26. During the quarter we have seen growth momentum across both PASS and online channels.
Key spend categories that particularly performed well include consumer durables, furnishing and hardware, apparel and jewelry, travel and entertainment among others. Online spends contributed 62.5% of the total retail spends of FY26. UPI on credit card usage continued to gain momentum, witnessing 10% growth in Q4 of FY26 compared to Q3. Department stores and grocery utilities, fuel, apparel and restaurants continue to be among the top five categories for UPI spends. Additionally, the ability to use RUPAY credit cards through QR based UPI acceptance terminals is gaining traction particularly in tier 2 plus markets that have the highest UPI active cards and force and UPI spends adding to the growth momentum as regards the financial performance of the company during Q4 and FY26.
Total revenue during Q4 was 5,187 crore with 7% growth YoY. Total revenue for FY26 was 20,708 crore registering 11% growth. Y OI increased spends this year resulted in higher spend based income contributing to healthy revenue growth with lower credit costs this quarter over the previous quarter we delivered a profit after tax of 609 crore in Q4 with 14% growth YoY. For the financial year 2026, SBI Card achieved a profit after tax of 2,167 crores with a 13% growth YoY. During Q4FY26 our receivables were at 56,926 crore around 2% growth YoY.
The interest earning assets were 54% with revolver balance at 22%. Revolve rates have been in the range of 22 to 24% over the last two years and we expect this to have a slight downward bias in FY27. We will continue to focus on building our EMI book. The cost of funds during Q4 was 6.4% lower by 82 basis points y OI for FY26 it was 6.7% lower by 71 basis points. The net interest margin for the quarter has improved to 11.1% versus 11% in Q3. For FY26 it has improved to 11.2% higher by 31 basis points.
We expect NIM to remain stable though at risk from any significant increase in cost of fund as a result of uncertain macroeconomic conditions in Q4. FY26 the opex has been lower compared to the previous quarter owing to lower spend based costs. However, for FY26 the OPEX was 22% higher YY on account of higher corporate spends. The cost to income ratio for Q4 was 57.2% and 55.3% for FY26 the cost to income ratio was impacted by higher operating expense on account of higher corporate spend. In terms of the asset quality, our gross credit cost has improved by 55 basis points quarter over quarter to 7.7% continuing with the reducing trend as witnessed in the last two quarters as well.
GNPA for the quarter was reduced by 46 basis point quarter over quarter to 2.41%. The NPA stock has reduced by 268 crores quarter over quarter and 348 crore yoy to 1370 crores. Stage 2 balance with its portfolio at significant increase in credit risk have reduced by 149 crore quarter over quarter and 711 crore yoy to 2090 crores. SBI card delinquencies have continued to reduce in this quarter too as witnessed in the previous six quarters. Keeping in view the annual ECL model refresh and uncertainty due to geopolitical turmoil, we are retaining an overlay of 220 crores for ECL provision.
Owing to strengthened underwriting standards, portfolio management and collections, asset quality continues to improve. With better portfolio mix, reducing NPAs and portfolio delinquencies. We expect the credit cost to moderate further in FY27. However, the rate of moderation in credit cost and asset quality will depend on the evolving geopolitical landscape and its impact on the macroeconomic factors and the unsecured lending ecosystem. We are vigilant and monitoring our portfolio for any likely impact of dynamic macroeconomic variables.
At the same time, with adequate capital and provision buffer, we do not foresee any significant impact in the coming quarter. Our capital adequacy ratio for Q4 was strong at a comfortable level of 25.5%. The ROA for Q4 was 3.6%, 29 bits higher YoY while for FY26, ROA was 3.2%, 11 bits higher. Y o yes was 15.6%, 8 bits higher y o y and 14.6% for FY26 lower by 5 basis points y oi as we close FY26, we remain optimistic about the long term trajectory of India’s consumer credit and digital payments ecosystem.
Looking ahead to FY27, we are ready and well prepared with adequate buffers to pursue profitable growth in a disciplined manner. It is important to reiterate that we remain vigilant regarding the geopolitical and economic landscape and will adapt our strategy if warranted. With that, we are now happy to take questions. Thank you.
Operator
Thank you, ma’. Am. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star n1 on their touch tone telephone. If you wish to remove yourself from the question question Q, you may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. Mr. Ajmera, you may please proceed with the question.
Questions and Answers:
Unidentified Participant
Yeah. Hi. Thank you for the opportunity. Am I audible?
Operator
Yes, you are. Please go ahead.
Unidentified Participant
Yeah. So my first question is regarding new account addition. Our new account addition has been significantly lower than let’s say previous year. So how do you see an attributed going forward?
Salila Pande
So as Mr. Ajmera, we had mentioned during our previous earning call that we will target acquisition of 9 lakh to a million for the quarter. And we have ended this quarter with around 9.17 lakhs. So we are on track and we had said that the growth will be calibrated. We look at the next quarter acquisition to be somewhere in the similar range and continue with the adding high value, good quality customers which ultimately add value to the overall financials of the company.
Unidentified Participant
Okay. My second question is regarding cost to income ratio this year it is around let’s say 57.2, which is let’s say 6% almost higher than previous year. How do you see this going forward?
Salila Pande
We expect the cost income to be in the range of 55 to 58 for the next year as well.
Unidentified Participant
Okay. Previously it used to be around 51, 52%. So what has changed into the company? So the change
Salila Pande
Has largely been on account of the corporate spend because the corporate spends this year have been way higher than what they were last year. As you can see from the deck, there is a substantial increase in the corporate spend this year compared to the last year. They add more on the. They basically add a few percentage points on the cost to income next year. Since we thought the growth will be a very BAU kind of a growth. We don’t expect therefore a very significant increase in the cost to income because of the corporate spends.
And so it will largely be the DAU revenue and the cost line which will determine the cost to income ratio.
Unidentified Participant
Okay. And the magnitude of change is majorly due to employee cost addition or there is some another element attached to it.
Salila Pande
No, no, no. So there’s employer, it’s not employee cost. There’s normally a bounce back involved in the corporate spend on account of which the cost goes higher. And that is the reason overall the business is profitable but the margins are comparatively thinner which basically boosts both on the cost and the income side. And that is why the cost of income is higher. It’s not because of the implied growth.
Unidentified Participant
Okay. And any take on the card closure?
Salila Pande
Card closure? You mean attrition?
Unidentified Participant
Yeah,
Salila Pande
I think we are doing in fact we are at par or in fact doing better than the industry. And would also like to add that if we look at the way that we have been working very extensively on customer engagement which has also benefited us in terms of ensuring that the customers are retained. And that is also witnessed by the improvement that we are seeing in our market share in terms of the transaction numbers as well. So nothing significant there. I would say that we are if anything up bar or maybe better than the industry overall.
Unidentified Participant
Okay, thank you,
Salila Pande
Thank you,
Operator
Thank you, ladies and gentlemen. In order to ensure that the management will Be able to address all the question from the participant. We request you to kindly limit your question to two questions per participant. If you have a follow up question, please rejoin the queue. Our next question comes from the line of Piran engineer from clsa. Please go ahead.
Piran Engineer
Yeah. Hi team. Congratulations on the strong improvement in asset quality. I have a couple of questions to ask. Probably more industry related but also applies to you now. Just firstly in terms of growth, how should we think about cards in force? Growth now slipping to mid single digits from double digits over the last couple of years. It’s true for you all and the industry. Is it simply put just underwriting, tightening and as those filters are loosened, growth picks back up or is it just that applications itself are slowing down at the other end?
Salila Pande
So applications are definitely not slowing down. Your first point was correct. Overall I think the issuers are had seen in the last couple of years back some asset quality issues. So there’s more tightening which has happened on the underwriting side and that overall it is also being seen that to a very large extent very few new customers are being brought into the fold. It’s normally the existing customers, credit tested customers who are getting new cards issued by another new issuer. So yes, there is a little bit of a caution which has resulted in comparatively muted growth in the industry.
Piran Engineer
So then it’s fair to say that out of this 910lakh customers we acquire every quarter, bulk of them are existing to credit card like very few would be new to credit card as such.
Salila Pande
Not in our case because see we also have a strong banker channel where we have visibility over customers who may be new to credit or new to credit card. And we also have separate underwriting models for them on which we work and we bring them on fold as well.
Piran Engineer
Okay, so ma’, am, what was the split fee then? Just a ballpark split between new to credit card and existing to credit card.
Girish Budhiraja
So Piran, we usually don’t give that but open market numbers are primarily credit tested customers. It is only in Bangkok where we have view to the customer statements and debits and credits that we look at NTC and NTCC as of now primarily we are looking, we are looking at NTCC there also. Okay, so you can fairly estimate that anywhere between 20 to 30% customers which we get from banker as of now are from NTC or ntcc.
Piran Engineer
Understood? Understood. Okay, that’s here. My second question is just on revolvers. Now you all have been highlighting this for the past couple of quarters. That revolver is on a downward bite and I Understand, it’s hard to predict what an exact number would be. Let’s say four quarters later. But let’s say 22 becomes 19 or 20. Hypothetically, what’s the game plan here really? Do we start massively cutting our reward points etc. For everyone? Do we hike the revolver fee further from 3.75 to 4? My question is how do we just protect profitability in a hypothetical scenario where revolvers say falls to 20 or below?
Girish Budhiraja
Super. We have not indicated a specific number as to where it’s going to go. Okay, there will be a downward bias. We are looking at our portfolios very carefully. Last two years acquisition, as we have been saying, we have been selective. So they are showing a lower revolving behavior. Our first attempt that we will do is to compensate it through the installment lending portfolios rather than cutting a rewards program or doing something else. You already have mentioned two or two ideas but there are multiple such things that can be done.
But whenever we do that, one has to keep an eye that engaged spending customer should not get negatively impacted. So there are multiple ways and means to balance fees and we will look at that. But as I stated, installment spend to lend the installment lending would be our first chosen preference and we would like to invest heavily there to get the asset build up there.
Piran Engineer
Got it, Got it. And this one last squeeze in. One last question for Rashmi. How do we think about cost of funds year on? It’s actually quite good that cost of funds declined in an environment where GSEC yield was rising. So. So getting into FY27, what’s the outlook?
Salila Pande
I don’t think it’s a little too early for me to give you any guidance on the cost of funds given that we are still not sure as to the RBI stance given the geopolitical tensions and the uncertainties in the environment. Obviously needless to say we will continue to manage our portfolio well. Keep looking at opportunities to reduce costs in all possible manners. But I think it’s too early for me to give you any kind of an indication
Piran Engineer
For the
Salila Pande
Full year.
Piran Engineer
Okay. Fair. Yeah, that’s it from my end. Thanks and wish you all the best.
Rashmi Mohanty
Thank
Salila Pande
You.
Operator
Thank you. Our next question comes from the line of Sizwan Goa from Schoenfield. Please go ahead.
Salila Pande
Yes,
Rashmi Mohanty
Thank you so much for the opportunity. So I’ll just follow up on the cost of fund question from P1. How about next one to two quarters? Is there still kind of downward repricing left on our cost of funds? Can you still decline?
Salila Pande
Sorry, can you repeat the question? Not very clear.
Rashmi Mohanty
Yeah. On the cost of fund just for next one to two quarters, do we still have room to reprice our borrowings so that the cost of fund can still decline?
Salila Pande
As we stated earlier as well that our borrowings do reprice anywhere in a 60 to a 90 day bucket. So yes, there will be some repricing that will happen over the next quarter or so. Yes. Is your question that will the repricing help us in a declining cost of funds? Is that your question?
Rashmi Mohanty
Yes. Yes. See I don’t know about that right
Salila Pande
Now. That’s what I said earlier in the answer to the earlier question as well. It all depends upon where we see the rates given the macro environment.
Rashmi Mohanty
I see. And just a technical one. Just can you help me understand what’s the denominator for your reported margin of 11.1% that is it a daily average basis or the PRM average basis? Because it’s a bit confusing given the loan book is perfect. Quarter on quarter, NI is down 5%, your margin is up 5.
Salila Pande
So the NIM and the cost of funds that you see in the table is on our 13 point average. Though separately we do give out a daily average cost of funds but the NIM that we publish is on a 13 point average.
Rashmi Mohanty
Got it. So the last one is on the other income, these two quarters. The other income one is 200 crores which used to be hundred crores. I’m just wondering, is there any one else component or it’s sustainable from here
Salila Pande
Your voice is not clear. Are you saying that we
Rashmi Mohanty
Didn’t get
Salila Pande
The question
Rashmi Mohanty
Other
Salila Pande
Income is.
Rashmi Mohanty
Yeah, well other income is up 60% year on year. Up 60%.
Salila Pande
This year. In the other income there have been some one offs as well which we have disclosed in the exchange filing on account of certain provision release and another provision around the tax matter where that number has been added to the other income for FY26 and therefore when you look at year on year that number is higher and that number is higher for this quarter. Year on year.
Piran Engineer
Thank you so much.
Operator
Thank you. Our next question comes from the line of Gaurav from nlp. Please go ahead.
Rashmi Mohanty
Yeah. Hi, good evening and thanks for the opportunity. Three questions from my side for firstly, if I recollect about 70% of your borrowings were linked to T bills, is that still the case?
Salila Pande
That’s right, yeah. T bills or echo rates about 70 75% of our borrowing bills. Bloating.
Rashmi Mohanty
Understood, Understood. So assuming that the rate stays here, there’s no further movement from rate. What do you expect let’s say from next two quarter perspective, where do your cost of funding should stay stable in that
Salila Pande
Should stay stable. Understood?
Rashmi Mohanty
Sure, sure. Second question. So just just to stress this a bit on margins while you maintain that NIMS would remain stable. If I look at 1 percentage point of revolver mix, why we don’t know what is the mix change that will happen in FY27. But assuming even if there is a 1 percentage point drop there is a and that gets converted into EMI there is still a 2527 basis point sort of hit on the interest income line or on margin. So how do we plan to offset this? If cost of funds remain stable then what is the other offset that we are looking at when we say the margin remains to be.
Girish Budhiraja
You are right because revolvers are at a much higher rate and and 1% decline in revolver has to be compensated obviously with a larger mix on the installment lending side. You’re absolutely right. So maybe we will not be able to take care of it fully but try to compensate it in some other matters or manner. There are ways and means as was being discussed. Two questions back to be able to whether we look at some other fee income sources or some other other scenarios. But this kept aside as of now we look see a downward trend in the revolvers.
But as the things start improving. Okay. And we have seen that our credit card cost is on a downward trajectory as the thing starts improving, we will look at certain pilots or certain experiments with with the segments which are marginal in in nature to be able to see where we can build the asset.
Rashmi Mohanty
Understood, Got it. That’s helpful. My second question is with respect to cost of income now that you’ve clarified that the other income has a couple of one offs which I could read from notes to accounts. The adjusted cost of income for this quarter is surprisingly at 60%. Typically in fourth quarter we see a lot of improvement versus 3Q because 3Q has a festive base. But in this quarter we saw the cost of income move up to 60 for the next year. While we’re guiding 65 to 58. How confident are we to be at the lower end of this guidance versus the higher end of this guidance?
Salila Pande
Yeah, you’re right that this particular quarter had a a one off which obviously added to the denominator and therefore if adjusted for that the cost of income would go up. But given the. I mean as of now, as we look internally, as we look at FY27, there are various initiatives on to ensure that the expense lines are contained as girish and ma’ am mentioned earlier, there are initiatives on to ensure that we actually book higher revenue line items both on the interest income and the fee income. And given all of that, we do think that this number should stay between a 55 to 58.
Rashmi Mohanty
Okay, got it. And given that corporate spends would be in the base largely, why would it still remain elevated? Because in this quarter or this year we saw that corporate spends were high and hence probably the cost to income went up. But next year I would have assumed that since that isn’t the base, there would be some improvement in cost income.
Salila Pande
So the fact that already in the base would mean that the variation in the cost to income between this year and next year will not be very high. But because they are part of our business and therefore contributing both on the numerator and the denominator, we’ll keep the actual metric high.
Unidentified Participant
Got it.
Salila Pande
You won’t see a big jump the way you saw it between last year and this year.
Girish Budhiraja
Actually, if you go two years back, you saw a very. This used to be broadly in slightly higher than actually present number. So. So it has, it saw a very big decline, a drop when the corporate spend went off.
Rashmi Mohanty
Right. Okay. So this is just the normalization with cost with corporate spends at 25%. Yeah.
Operator
I’m sorry, but you may, you can rejoin the K promo.
Rashmi Mohanty
Sure, sure, sure. Thank you.
Operator
Thank you. Our next question comes from the line of Maruk Adajania from Tara Capital. Please go ahead.
Salila Pande
Yeah, hi. So I had a couple of questions. Probably this was discussed earlier on the call also. So our receivables growth is now 2% year on year. And given the war situation, and given that even other banks in their commentary were not sounding very optimistic on credit cards growth, or to put it in other words, they were more bullish on other segments than cards. So how do you view your near term growth? Because of uncertainties and also because of lack of festive season growth is likely to remain subdued in the near term.
Right, Right. One to two quarters. And then we look up for the festive pickup. We look forward to the festive pickup. Is that the correct assessment? So Maruk, right now we are not giving any guidance on asset growth. And if you recall, in the last earnings call we had said that the asset growth will follow card acquisition growth. So we are building on card acquisition and we expect that the asset growth will follow the card acquisition growth. Apart from that, as far as the war situation is concerned, I would say we are keeping a very close eye.
But we have not as such we have been cautious. So there is nothing additional in terms of putting the brakes or reducing the growth that we are working on. Having said that, we will continue to monitor the position and take action, corrective action if need be. But as of now we are not giving any guidance on the asset flow side. Got it. And regarding the provisioning reversal. So we’ve had 47 crore of credit cost reversal. Right. And we’ve seen that in the past few quarters as well. So you have write offs which are possibly coming down and then you are seeing a reversal on provision.
Is that likely to continue? Because it’s very difficult to forecast that number. Right. It’s
Rashmi Mohanty
Either zero or it’s been zero or negative for quite some time.
Salila Pande
So Maruk, these numbers actually we rolled back 47 crores. But as we mentioned 220 crores of management overlay is being retained to a very large extent. The overall ECL number is a function of my stocks in stage two stage three and the provision rates. And as we have shown in our financial Results, also stage 2 stage 3 stocks have gone down substantially on account of which we have taken a small write back of 47 crores. But we are still holding buffers because to be ready and resilient for any I would say stress which may have come in the environment because of the geopolitical risk.
Ultimately it’s the model which informs how we are retaining the ECI provision. Okay,
Rashmi Mohanty
Thanks a lot. Thank you.
Salila Pande
Thank you.
Operator
Thank you. Reminder to all the participants to limit the question to two question per participant. If you have a follow up question, please rejoin the queue. Thank you. The next question comes from the line of Rohan M. From Equity securities. Please go ahead.
Rashmi Mohanty
Thanks for the opportunity. Since from this 220 crores of additional provisions that we are carrying the 100 crores increase that
Operator
Happened during the quarter, is it on account of the ECL refresh or have we made any incremental provisions there?
Rashmi Mohanty
Whatever provisions we are making it is not because of the asset quality at all. You can see our stage two stage three is going down. We are selecting in our underwriting. So there is no additional provision for that asset quality. However, because of the ECL model is still under. Is still under the fresh and our. You can. Ma’ am has already mentioned in the last question that geopolitical environment is also uncertain. So whatever ECL model provisions are giving, we are keep. We have kept 100 crore for that future also to take anything which.
Which is uncertain as on date.
Operator
So. So what I was trying to understand was this additional Hundred crores increase that has happened in this quarter on the management overlay that is in routine as a pnl.
Rashmi Mohanty
Yeah, definitely.
Operator
Or is it a release of the provision from the ACL refresh?
Rashmi Mohanty
No, no, no, no. Every provision is from the P.
Operator
Okay. Okay. So. So the core. If you are not increasing the management only then the reported provisions would have been lower by 100 crores. Okay. Second is that. Yeah, correct.
Rashmi Mohanty
Correct. Correct.
Salila Pande
Your
Rashmi Mohanty
Profit will be higher.
Salila Pande
Profit would have been higher. Therefore. Yes,
Operator
Sure. Got it. Secondly, on the fresh slippages number if you can quantify what was it for 4Q versus 3Q.
Rashmi Mohanty
See we don’t declare any slippages number. But you can see from the stage three his stock has reduced by 268 crore. So that means repeaters are also going in a improved trajectory quarter. Of course.
Operator
And just on the one offs that happened this quarter, how have they been accounted for in the P L? Which line item are they impacting? And if you can just help me refresh pidff. What was that fund?
Salila Pande
Which one of are you talking about?
Operator
The PIDF and gst.
Salila Pande
Okay,
Operator
So
Salila Pande
The PI. The. The PIDF actually is. Was reduced from the expenses. Because it was a provision that we were carrying along with the expenses. And since the expense didn’t happen or the payment didn’t happen it has been reduced from the expenses. The GST has been. Is there part of the other income line?
Rashmi Mohanty
Okay, got it. And what was this pidf? Sorry to
Operator
Interrupt you sir. Please, you guys each and the Q4 call operation. Thank you. The next question comes from the line of Subranshu Mishra from Philip Capital. Please go ahead.
Shubhranshu Mishra
Hi Girish. Hi Rashmi. So a couple of questions. The first one is on the open market mode in terms of CEF as well as new sourcing, we are much above 50% now. So this would also reflect on our OPEC. And while we talk about banker, the open market is weighing on access as well as new sourcing. So if you can speak about that. Second, is that out of the EMI pool how many guys or what is the percentage of of TL on cc? That is my second question. And third is that we have barely grown in terms of our bottom line by around 13%.
And yet we are giving out a dividend. Was that necessary? We could have possibly not given a dividend and retained it and deployed it back into the business. Thanks,
Girish Budhiraja
I will try. I’ll give you the answer for the first and second part before I give it to MD ma’ am for the third. Okay, so the on the Bangka and open market the strategy has been consistently that we would try and do 5050 from both the channels and if possible 55 from Bangkok and 45 from open market. That’s the range that we will look at. In the last one year we have been broadly in the same range. However what our tie ups with some of the digital partners like Phonepe, Flipkart, Tata, New Indigo, some of these partners numbers are working in a very good direction and they give a flip up to the overall open market numbers.
So that’s why you see some amount of shift in the favor of open market. But on a consistent long term basis our strategy Is to remain 50 to 55% banker and 45 to 50% open market. That is the first one. Secondly, on the installment lending portfolio we have never given the breakup of PL on cc. However there are three kind of installment lending are there in the book. One is as you said, PL on cc. The second is what we call installment at the point of sale itself and people convert at the point of sale while purchasing electronic good or others.
And the third part is before the payment due date a whole lot of people convert their outstandings into installments. So that is these three constitute the overall book. On the installment of the dividend part I’ll
Salila Pande
Giving dividend. I think shareholders and investors are very critical and important stakeholders for the company and they need to be rewarded for the capital and the belief and the trust that they put in the company. If we don’t have any asset quality issues, we don’t have any capital adequacy issues, we are under leveraged actually if you look at that. So I would say that to rupees 50 paisa per share is a pretty decent dividend or a return which is due to the stakeholders. And accordingly that has been the view has been taken by the board to provide it to the stakeholders.
Thank you.
Shubhranshu Mishra
Thanks. The new UI of the E Store is really great on the app. That’s just a comment, it’s not a question.
Salila Pande
The new UI on the app is commenting on that.
Shubhranshu Mishra
That’s revamped. It’s really great. The
Girish Budhiraja
Install has been revamped. Yes, you should check our website also now that is fewer people are coming there but we have revamped that also completely.
Shubhranshu Mishra
I’m done with my question. Thanks.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. Okay, our next question comes from the line of Rishabh Doshi from Nimriti Investment Advisor. Please go ahead.
Rashmi Mohanty
Yeah, hi, I Just wanted to understand how rent as a spend spending category is doing and how much impact does it have on the total spend.
Girish Budhiraja
So rent as a category used to be very large till two years back we started living a fees on it. For us rental spends is hardly. It’s a very low spending category as of now. Okay, so there is no impact on us of any kind. In fact when guidelines that come in that the third party websites or apps should do the KYC for the landlord and without that they should not allow the rental payment. By that time we had our rental payments were already fairly low. So all the growth that you see is actually despite rental degrowing to a large degree.
Rashmi Mohanty
Okay, that’s all from my side.
Operator
Thank you. Our next question comes from the line of Anuj Singhla from JP Morgan. Please go ahead.
Anuj Singla
Yeah, good afternoon. Thanks for the opportunity. So first question is on the receivable growth. Obviously we have seen a deceleration there to 2% but if I recall we have been flagging that we will see increase in the new card acquisition and receivable growth will follow. So should we see that FY27 a new card acquisition and the receivable growth acceleration only in FY28 is that the scenario we should be looking at?
Salila Pande
So Anuj, right now as I mentioned earlier also I would not give any guidance on the asset growth. We continue to stick with what we had said earlier that we are working on the card acquisition. The guidance is around 9 lakhs to million in a quarter and as you mentioned that will lead to asset growth in the coming days. Right now not giving any guidance on the numbers.
Anuj Singla
Fair enough, fair enough. And secondly on the asset mix, while Revolver has been trending down for the past many quarters, one offset was supposed to be emi and I think Girish has talked about in the past that there have been various initiatives to incentivize conversion to emi. But when I look at this quarter even EMI has been pretty weak. So can you talk about the trends there and should we? Is that one of the offset we should be looking for towards offsetting the lower revolver in FY27 or 28?
Thank you.
Girish Budhiraja
So Anuj, you’re right. What happens is during the festival season a whole lot of installment lending at the point of sale happens. So in the month of September, on October, a large quantity of spends which happen during the festival period gets converted into installment and most of these installments because average tenor is around seven and a half, eight months. So either IT people pick up six month, nine month or 12 month tenors. So what happens is by the end of February, March, the first lot of six month tenor cases come come up for full completion.
So that is why you see a decline on the installment asset. But this is typically a trend over years and it gets build up. Yes, it is a continuous treadmill and we have to continue to get new asset build up here. But that is the nature of the business. So some as I stated earlier some, some amount of revolving we would be able to offset with installment lending not fully we have we’ll have to see it other mechanisms to be able to balance and look at income sources.
Anuj Singla
So Girish, follow up on that. When I look at the YOY trends which will take care of the seasonality which you spoke about there also it’s declined from 35 to 32. Right. So I’m assuming that if you include the festive seasonality in both the years still we should have seen a stable or improving performance even you know that’s not the case. So. So just trying to understand if there’s something beyond initiative. No,
Girish Budhiraja
No, no. We when we looked at the data this was one part. Second part was there was a year on year there was some impact of we were doing Apple offer last year. This year we were for the last quarter it was not there. So there was some amount of impact of some of those things. Okay. But these are I would say transient and can be taken care of within next three to six months.
Anuj Singla
Okay. Okay, got it. Thank you. Thank you.
Operator
Thank you. Our next question comes from the line of Pranusha from 3P Investment Managers. Please go ahead.
Rashmi Mohanty
Hi, thanks for taking my question. Just a couple of them bookkeeping ones. Your recovery shown pretty good traction
Operator
Now nearing almost 190 crores. Could you give a sense of how large your perhaps written off book is where you expect still sizable maybe 10 to 15% recoveries to happen.
Salila Pande
We don’t disclose the written off portfolio that we have. But yeah, we have intensified efforts on recovery in terms of the written off tool and that is reaping benefits for us.
Operator
But you expect this number to keep inching up from this 190cr levels.
Salila Pande
So it will be somewhere in a similar range because now we are seeing a downward trajectory in terms of the write offs as well. But the efforts will continue to recover the most.
Operator
All right, understood. And generally in your presentations you used to disclose the salary employed breakout which you could conduct for this quarter. And new sourcing.
Salila Pande
Do you have the basics? During,
Rashmi Mohanty
During the quarter
Operator
70% was salary.
Salila Pande
Yeah.
Operator
So actually like if I Look at the last two quarters, I think even last quarter 72% this quarter or 70% like you used to. This is on the salary side. I think a self employed used to be in that 40 or 50% range. So do you intend to increase sourcing in the self employed segment or it’s a conscious choice to slow down that Right now
Rashmi Mohanty
As from the beginning of the call we are mentioning that we were quite selective in our selection of the customer due to our asset quality or other portfolio management. So we are mindful while selecting the customer and onboarding for the card. So in the last quarter it was shown that more application from the solid customer and good customer are from the sell lead one. That’s why we onboarded them. So it is not as that we are declining self employed customer but whatever good customers are coming, we are onboarding them.
Operator
All
Unidentified Participant
Right, Understood. Thank you.
Operator
Thank you. We’ll take the last question from the line of Atul Kumar from Salvation Capital. Please go ahead.
Rashmi Mohanty
Yeah, thanks for the opportunity. The question was on the side of trade costs.
Operator
So what kind of moderation can be expected given that trade cost had been higher for some time and related to that in terms of roas at one point of time we used to have like a 5% from their moderation to 3, 3.5%. So on that side I’d like to know. Thanks.
Salila Pande
So Atul, although we are not giving any guidance in terms of the credit cost numbers right now, but we will continue to see moderation in terms of the credit cost which is very evident from the if you look at the stocks also we are seeing continuous reduction in our stage three and stage two stocks. So accordingly the credit cost will continue to trend downwards on the roa. Again we have said in the prior earning calls as well that we are aiming towards 4 to 4.5% of ROA in the medium term and that is achievable and we are working towards it.
Okay, thank you. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Ms. Salila Pandey for closing comments. Thank you. And over to you ma’. Am.
Salila Pande
Thank you. Danish. I would like to sincerely thank shareholders, customers, partners and employees for instilling their trust, support and confidence in the company. Thank you once again and wishing all a successful financial year 2027.
Operator
Thank you ma’. Am. Ladies and gentlemen, on behalf of SBI Card and Payment Service Limited that conclude this conference, thank you for joining us. And you may now disconnect