SBI Cards & Payment Services Ltd Management Discussions

INDIAN ECONOMY

The Indian economy demonstrated a consistent pattern of expansion and stability throughout the financial year 2024-25, confirming its position as a major global economy witnessing strong growth. According to the provisional estimates released by the NationalStatisticalOffice(NSO) of the Ministry of

Statistics and Programme Implementation (MOSPI), real Gross Domestic Product (GDP) is estimated to have grown by 6.5% in FY 2024-25, revised higher from 6.4% reported in the first advance estimate, on the back of significant uptick in economic activity in the fourth quarter of the financial year.

In a growth-scarce global environment, and despite the rising geo-political conflicts and trade tensions, India performed better than many other advanced economies. The sustained upward trend highlights the nations solid economic foundation, effective government policies, a dynamic services sector, and considerable domestic spending, all of which contributed to a favourable view of Indias potential for long-term economic progress. services Integral to this accelerated growth trajectory and increasing economic self-sufficiency have been significant reforms and considerable capital allocated towards physical and digital infrastructure, including government initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme.

Indias GDP growth (estimated and projected)

Indias economic stature continues its upward climb, with the nation now holding the position of being the worlds fifth-largest economy by nominal GDP, and the third-largest when assessed by Purchasing Power Parity (PPP). Ambitious national targets have been set to achieve a US$ 5 trillion economy by FY 2027-28 and a US$ 30 trillion economy by 2047 through substantial infrastructure investments, ongoing governmental reforms, and widespread adoption of technological advancements.

Reflecting this commitment, the capital investment budget for the upcoming financial year (2025-26) has increased to 11.21 lakh crores, representing 3.1% of Indias GDP.

(Source: Economic Times)

Future Outlook

The economys outlook remains positive and it is expected to grow by 6.2% in financial year 2025-26, as per Indias

Economic Survey 2024-25, with projections that by 2030, India will likely become the worlds third-largest economy, driven by investment in infrastructure, greater private sector capital

. Ongoing expenditure, and the expansion of financial reforms are anticipated to support this long-term economic advancement as the economy moves ahead towards its goal of embodying Viksit Bharat by 2047.

(Source: Economic Survey)

Several factors underpin this positive outlook, including Indias favourable demographics, increasing capital investment, proactive government schemes, and strong consumer demand. Improved spending in rural areas, helped by moderating inflation, further reinforces this growth trajectory. The

Governments focus on capitalexpenditure,prudentfiscal management, and measures to boost business and consumer confidence are creating a supportive environment for both investment and consumption. Vide Union Budget 2025, for taxpayers opting for New Tax Regime, tax rebate has been provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them on a normal income up to 12 lakh (other than special rate income such as capital gains). For salaried taxpayers, this limit is

12.75 lakh per annum due to standard deduction of 75,000.

This has been done to boost disposable income for middle-class households and stimulate consumer spends.

(Source: PIB, World Economic Outlook, IMF)

However, as global headwinds ranging from trade to geopolitical tensions intensify, the economic outlook will depend on delicately balancing evolving trade relations and the efforts to boost domestic consumer demand. There is a need for India to balance robust domestic demand and government spends against the shifting tides of global trade and economic uncertainty.

In addition, the continuing stress on asset quality of banks and NBFCs in the unsecured lending portfolio due to overleveraging at individual level, and RBIs continuing monitoring and regulatory actions to moderate the growth in this space, has impacted the growth prospects for the industry players.

Specific to credit cards, the YoY growth in cards-in-force is slower this year at 7.9% compared to 19.3% in FY 2023-24. The industry will have to balance out the opportunity that the underserved segments provide with a prudent customer acquisition strategy.

INDUSTRY OVERVIEW Indias Digital Economy

Indias digital economy is emerging as a central pillar of national growth, driving structural change in financial services and expanding economic inclusion. A dynamic mix of policy initiatives, technological innovation, and rising digital adoption has positioned the country at the forefront of global digital transformation.

The widespread adoption of smartphones, rapid internet penetration, and growing digital literacy are enabling millions of consumers and businesses to participate in the formal economy. Flagship government programmes such as Digital India and Jan Dhan Yojana, complemented by real-time payment infrastructure and regulatory support from the Reserve Bank of India, have laid the foundation for a connected, cash-lite economy.

Digital payments have transformed significantly in India, primarily due to the Unified Payments Interface (UPI) and other such platforms enabling real-time inter-bank transactions and driving unparalleled growth in the past decade. These platforms are gaining international momentum and handling billions of transactions monthly, positioning India as a global leader in real-time digital payments. While cash remains essential, especially in semi-urban and rural areas, the widespread adoption of cashless methods and indigenous digital payment systems has enhanced financial inclusion across the country.

This digital shift is redefining consumer payment behaviour, with a significant across urban and rural areas. Mobile-based payments are activity, particularly nowthedominantmode of daily financial among the youth and in the emerging cities.

Indias fintech sector is experiencing rapid growth and becoming a global leader as it extends beyond payments to include innovations in lending, wealth management, insurance, and more, driven by rapid technological advancements and a vibrant start-up ecosystem. Digital platforms are enhancing accessibility and user experience in financial services. With a large, digitally savvy consumer base and a supportive regulatory framework, the sector fosters innovation while ensuring stability, resulting in tailored solutions like micro-lending and simplified investment platforms.

Future Outlook

The future of Indias digital payment sector is poised for continued digital adoption and innovation, with initiatives aimed at expanding UPIs international reach and connecting with global fast payment networks. Regulatory bodies are developing strategies to enhance digital access and security in payment systems. Upcoming advancements include new UPI features and exploration of digital currency pilots. The sector will evolve further by addressing digital access gaps for underserved populations and supporting small businesses.

Digital payments in India continue to thrive, with transactional volume having grown by more than 45% CAGR over the past 3 years. The ongoing growth in digital payments is driven by various factors, including innovations by payment ecosystem participants, new business models, technological advancements, and increasing customer awareness.

Indias fintech sector remains highly promising, supported by continuous tech-driven innovation and a strong focus on solving localised challenges. The adoption of digital payments is also being accelerated by the governments push towards digital infrastructure, rise in small ticket high-frequency transactions including faster 5G rollout, expanded broadband access, and spectrum allocations aimed at improving network capacity and speed. Rising smartphone penetration and wider internet access across rural and semi-urban areas are further deepening the reach of digital financial services. Alongside this, the integration of Artificial Intelligence (AI) and Machine

Learning is expected to strengthen fraud detection, sharpen risk assessment, and deliver more tailored financial solutions.

Additionally, blockchain technology is gaining popularity for secure transactions and record-keeping. The sector is likely to see greater integration of financial services into non-financial platforms, creating smoother user experiences. There is a strong push to improve financial inclusion, especially for unbanked and underbanked populations, by using digital solutions to provide credit and essential services.

Credit cards Experiencing significant growth expansion over the pastThe industry has experienced a significant five years, with the number of credit cards almost doubling, fuelled by factors like increased online spends, diverse product offerings, expansion of customer segments and a growing economy. According to reports from the Reserve Bank of India (RBI), the number of active credit cards in circulation surpassed

11 crore in FY 2024-25, reflecting a year-on-year (YoY) growth of 8%. Credit card spends for FY 2024-25 reached

21.1 lakh crore, marking a 15% increase over the previous year. Additionally, as of March 2025, the count of Point of Sale (POS) terminals reached 1.1 crore, marking a 25% YoY growth.

The ability to use credit cards for micro and contactless payments has led to greater frequency of use, higher average monthly transactions per user, and deeper market penetration. Issuers have also seen improved engagement, with digital platforms enabling a broader customer base to adopt credit responsibly and conveniently.

For merchants, this evolution means more payment options, reduced operational friction, and access to new customer segments. This integration marks a strategic shift in Indias payments ecosystem – where convenience, inclusivity, and innovation converge to create a scalable, future-ready credit infrastructure.

Integration of Rupay Credit Cards with UPI Platforms

The integration of RuPay credit cards with UPI platforms has further accelerated the adoption of credit cards, significantly enhancing the reach and frequency of digital payments.

Complementing this trend, the adoption of UPI QR codes has surged remarkably, witnessing a 92% YoY increase and reaching approximately 65.8 crore, as on March 31, 2025.

This rapid growth highlights the expanding role of QR-based payments in driving digital transactions, offering convenience and accessibility to both merchants and consumers.

Traditionally confined to high-ticket, point-of-sale purchases, credit cards are now powering everyday spends bringing convenience, credit access, and financial empowerment to a broader and growing base of users. This frictionless interface has made credit more accessible.

As a result, Indias credit card transaction volumes have increased significantly. With increasing digital adoption, a shift toward cashless transactions, and lucrative reward programmes, credit card usage is growing rapidly across the country.

OPPORTUNITIES

India presents significant market, with an average card ownership of around 8 per 100 individuals as of March 2025. Global competitors are comparatively higher in penetration with key countries, such as 222 in Brazil, 54 in China, 66 in Australia, 82 in UK, 251 in South Korea and 360 in the USA (Source: BIS Data as of end of

2023). This disparity underscores a significant accelerate credit card adoption in India, which will be largely supported by growth of digital payments infrastructure in India.

. Payment Infrastructure

The acceptance infrastructure, comprising both POS and BQR terminals, has expanded nearly two-fold over the four-year period. The initiative of Payments Infrastructure Development Fund (PIDF), established in 2020, is expected to continue supporting this trajectory of growth. PIDF scheme has been a pivotal RBI-led initiative to bridge the digital divide in payment acceptance across India, especially in regions with low digital penetration. This has empowered small merchants, expanded digital payment access, and contributedtoIndiasbroaderfinancialinclusion and digital economy goals Merchant acquiring infrastructure across both online and offline channels has witnessed rapid expansion, particularly in Tier 2, 3, and 4 cities. Over 50 million merchants accept digital payments, primarily facilitated through QR codes and interoperable payment platforms

RBI has authorised linking RuPay credit cards to UPI, allowing users to make UPI payments using their credit card limit, this has significantly surged the demand for

RuPay credit cards. UPI accounted for over 80% of overall retail digital transactions in FY 2024-25 and is expected to reach over 90% in next 3-4 years Emergence of Super Apps signals a transformational shift in Indias Digital Payments Landscape by integrating payments, e-commerce, and personalised financial services, super apps are poised to accelerate digital payment adoption, boost credit card usage, and deepen financial inclusion

2. Consumer Behaviour

Overall digital payments in terms of value have grown by 18% CAGR in the past three years; UPI accounted for 46% growth during the same period. (Source: RBI and NPCI payments system data, March 2025) Digital customer acquisition is growing as end-to-end digital experience is gaining customer acceptance complemented by the penetration of smartphones

E-Commerce is growing significantly in Tier-2+ cities compared with Tier-1/metro cities in India Credit acceptance is growing; Retail Credit grew at 12% YoY as on March 2025. (Source: RBIs data on Bank Credit) Indias e-Commerce market is estimated to reach around

26 lakh crore by CY 2030, from approx 10 lakh crore in 2024, growing by approx.17-18% CAGR. (Source: IBEF Report November, 2025)

THREATS

During FY 2024-25, Indias credit card industry navigated through complex landscape marked by moderated economic outlook, rising delinquencies, and shift in consumer spends pattern driven by macroeconomic uncertainty.

In September 2023, RBI launched the Credit on UPI initiative, and in February 2025, this has been extended to Small Finance Banks, gradually transforming credit accessibility. Though in early stages, this initiative has the potential to significantly expand digital credit penetration, especially among the underserved demographics.

Increased risk weights for unsecured lending have pushed up capital adequacy requirements, inflating both capital and operational costs for the issuers. Compliance, governance and risk management expenses are on the rise, further putting pressure on margins.

Continuous technological upgrades are critical for enhancing efficiency and customer experience. The rapid pace of innovation accelerates obsolescence, driving up long-term IT expenditure and straining ROI on technological investments.

160 Integrated Annual Report 2024-25

Despite these challenges, companies which proactively adapt by embracing digital credit channels, investing in scalable tech infrastructure, and offering data-driven, customer-centric solutions strengthens their market position.

RISKS AND CONCERNS

Throughout FY 2024-25, the credit environment remained volatile with the credit card portfolio showing elevated levels of stress and over-leverage. Defaults in the credit card industry remained elevated due to the continued stress in the unsecured portfolio. A cardholders ability to repay their balances can be negatively impacted by over-leveraging, i.e., a significant increase in their payment obligations to other lenders under mortgage, credit card and other borrowing obligations. The repayment obligations can also increase due to increases in base lending rates or structured increases in payment obligations. The concerns of a global slowdown, job losses, rising interest rate scenario, continuing geo-political tensions, have an adverse impact on the Companys portfolio.

The Company has been addressing the impact of macroeconomic environment, over-leveraging of the customers, global slowdown etc. in an agile and proactive manner through policy interventions both at the acquisition and portfolio management stages. As a result, the Company has been seeing a continued reduction in flows into delinquency. The Company continues to be watchful of the dynamic environment and evolving its strategies accordingly.

Further, the Company has also strengthened and streamlined its policies and processes on account of recent regulatory changes for unsecured lending by banks and NBFCs.

The Company continues to be watchful of the dynamic environment and is determined to ensure profitablegrowth. It has been taking several steps to strengthen New Acquisition, Underwriting and Portfolio Management framework. As a result, it has been seeing a continuing reduction in flows into delinquency and an improvement in the delinquencies of new acquisitions.

The cyber threat landscape continues to grow in complexity and scale, driven by rapid digital transformation and increasingly sophisticated adversaries. Threat actors now exploit a broad range of attack vectors – from supply chain vulnerabilities and compromise to cloud misconfigurations and advanced phishing social engineering campaigns, targeted ransomware attacks, and others.

Additionally, with the prevailing geopolitical conditions, nation-state actors are increasingly targeting critical infrastructure, evidenced by repeated attempts to compromise financial institutions across the country.

To address the ever-increasing cyber threats, the Company has given top-most priority to strengthening its information and cybersecurity posture across people, processes, and technology. All the customer and organisational data, along with information assets, are protected by controls adopted as per the defence in depth strategy. It remains well equipped to prevent, detect, withstand, and respond to cybersecurity attacks or insider threats with security controls implemented across layers (Network Perimeter, Internal Network, System, applications and user awareness). The Company remains in compliance with the RBIs cybersecurity mandate for NBFCs.

BUSINESS OVERVIEW Card Acquisition

The Company continued to grow its credit card portfolio in FY 2024-25, and its active card base stood increased to 2.08 crore as of March 2025, compared to 1.89 crore cards in March 2024, representing a 10.2% YoY growth. Continuing to leverage both Open Market and BANCA channels, it sourced approximately 41 lakh credit cards during the year. Compared to the previous year, new account acquisition was moderated to prioritise portfolio quality by tightening credit filters and refining underwriting models.

SBI Card is committed to expanding its core cards portfolio with a focus on premium segments. It also remains dedicated to expand its co-brand portfolio and accelerate digital onboarding to deliver seamless and secure experience to its customers.

The Company has been focussing on strengthening its digital acquisition channel SBI Card SPRINT to offer a seamless experience to its customers, followed by immediate issuance of e-cards. Digital enablers such as VKYC, E-sign and Account Aggregator are being used across all the sourcing channels, with key emphasis on API-based integration with all its digital partners.

With the integration of SBI Card SPRINT with SBI YONO app and internet banking, an increased percentage of BANCA new account acquisition is now being initiated digitally. This has significantly improved the customer onboarding experience and is also aiding in cost saving in its backend operations. The journey is being enhanced regularly for advanced features and functionalities. SBI Card continues to focus on high fee variant cards through focussed campaigns and targeted sourcing.

Spends and Engagement in FY 2024-25

SBI Card continued its growth momentum in retail spends which stood at 3,08,779 crore in FY 2024-25, demonstrating 18% YoY growth

Corporate business spends stood at 24,701 crore, reflecting a decline following the issuance of regulatory guidelines restricting Business Payment Solution Provider (BPSP) payments. The Company is actively diversifying its portfolio across multiple sectors

It continued with its various merchant partnerships at pan India and regional level, launching 1,750+ offers during the year. A few of these partnerships for EMI offers on customer spends include large national partners namely Apple, LG, Samsung, HP, Sony, and regional players like Aditya Vision, Electronics Paradise, Great Eastern, Poorvika, etc

It continued to leverage its growing significance of online purchases, as 61% of spends were made online

Receivables grew 10% from 50,846 crore at the end of FY 2023-24 to 55,840 crore at the end of FY 2024-25. The interest-bearing assets of the Company grew from

31,093 crore as of March 31, 2024 to 32,962 crore as of March 31, 2025

Credit on UPI

In December 2024, SBI Card launched Credit on UPI and gives cardholders the facility to avail EMI at the time of purchase on UPI linked RuPay Cards. This functionality is applicable on P2M transactions done via third-party apps like BHIM and GPay and enables cardholders to choose from flexible and

EMI tenures across UPI merchants.

Linkage of RuPay Add-on Credit Cards on UPI: Launched in December 2024, this functionality can be availed by registering the RuPay add-on credit card with third-party UPI apps. This will further enhance the avenues for add-on cardholders using SBI Card on RuPay platform on UPI merchants, thus facilitating an enhanced, convenient, and seamless payments experience

Brands

SBI Card sustained its position as the most recognised brand in the credit card category, with the highest Top-Of-Mind Awareness and 100% Total Awareness, as per the Brand Track survey commissioned by it and conducted by Kantar IMRB in during the period January-March 2025

The Companys advertising was focussed on driving customer acquisitions and ensuring brand visibility consistently through FY 2024-25. Multiple campaigns leveraging traditional as well as cost-effective Above the Line (ATL) media platforms were released to promote the companys core as well as co-branded products among specific audience segments in specifically targeted geographies. SBI Card MILES was launched in April through an extensive Print Ad campaign across leading English dailies over a 3-month period. An integrated campaign in Q2 promoted the Reliance SBI Card through Radio, Print and Out-of-Home (OOH) across target cities. In Q3, the company ran sustenance campaigns for

SBI Card MILES and Cashback SBI Card through in-flight branding and cinema advertising respectively. Selective and targeted outdoor advertising was deployed in Q4 for the promotion of KrisFlyer SBI Card (apart from Print Ads in leading business dailies), SBI Card PULSE and Cashback SBI Card through OOH sites at key international airports, bus branding, and bus shelter branding campaigns, respectively. The company also released fraud awareness campaigns on ATL media across key fraud-impacted and fraud-prone areas during the year

The Company also leveraged its ongoing Retail Kiosks Programme to further augment Brand Salience. Over 250 kiosks at strategic customer touchpoints like airports, shopping malls, railway stations, metro stations and partner stores ensured brand presence at the Point of Sale (POS) while also enhancing customer acquisition efforts

The power of public relations was harnessed by the Company for varied aspects and initiatives, including new products and partnerships, to further bolster its brand reputation. New products such as SBI Card MILES and KrisFlyer SBI Card and existing core products such as AURUM, SBI Card Elite, SBI Card Pulse, and Cashback SBI Card, among others, received positive coverage across key national and regional media in the country

SBI Card was recognised as the ‘Readers Digest Trusted Brand 2024 in the credit card category. This title has been bestowed upon the Company for the 16^th time

DIGITAL PLATFORMS Mobile App

The SBI Card App continued to record higher growth and digital penetration amongst the cardholders of SBI Card. It can be downloaded from both Play Store and App Store and maintained a high customer rating of 4.6/5.0 on Play Store and 4.5/5.0 on App Store during FY 2024-25, and recorded 1 crore Monthly Active Users (MAU) with an active installation of 1.5 crore apps till date. It continues to be a preferred self-service digital channel with over 100 features for account management, self-servicing, cross-sell, insurance, and more

In 2024-25, numerous features and functionality updates to simplify servicing, enhance customer experience, increase engagement, and drive transactions were launched. Some of these key implementations included – UI/UX revamp of 25+ features of SBI Card App, introduction of the View E-card feature, Milestone Hub, Set Preferred Card, Health Protekt Plan, request for On Demand Credit Limit, Digital KYC enhancements for address update, multi-carding and add-on card application process. Several key security enhancements and implementations included restriction of screenshot, screensharing, screen recording, and active all call alerts

Website:

SBI Card website continues to be highly visited by customers and prospects with over 25.2 crore visits in FY 2024-25. The website channel caters to multiple features that enable self-servicing, cross-sell and insurance bookings, along with a major source to check product benefits in the credit card catalogue. The website is also a key source for organic applications through SEO initiatives and eApply journeys for digital applications The Companys website continues to integrate new features and enhance customer experience. Key implementations during the year included Milestone Hub, Set Preferred Card, On Demand Credit Limit Increase, introduction of Refreshed Offers page in pre-login, launch of E-Store, multi-carding journey for KYC non-compliant customers, Acquisition-led UI changes on credit card and E-apply catalogue in pre-login website, creation of CSR/ESG pages in the website pre-login, and journey enhancements to add-on Card Application

WhatsApp:

WhatsApp Connect serves as an additional self-servicing platform for the cardholders to access features like account summary, utility bills payment, Flexipay bookings, download statement, rewards balance enquiry, and many more As of FY 2024-25, 1.08 crore customers have subscribed for WhatsApp Connect service to receive updates and manage their servicing needs. Approx. 33 lakh Cardholders utilised the services on the platform during the Financial Year To increase the engagement, several new features were introduced i.e., pre-approved credit limit increase offers, utility bill payment reminders, transaction history journey with prompts to book Flexipay and a dedicated live-chat option for select Cardholders

Ask ILA:

The Companys chatbot Ask ILA seamlessly integrates with its mobile app and the website. It has been an important self-service channel with over 2.9 crore logins in FY 2024-25. The platform addressed over 7.2 crore customer queries during the year Several new features were added to Ask ILA during the year to enhance customers experience, engagement, and security, and to increase their transactions. Some of the key features include New Ask ILA image on website for improved customer experience on mobile view of website, add-on card applications on Ask ILA, among others

Digital and Social Media Initiatives:

By the end of FY 2024-25, the Company built a robust social media presence across FaceBook, Instagram, YouTube, X, and LinkedIn, crossing 21.2 lakh followers/subscribers. The content strategy drove 2 billion impressions, 640 million in reach, and 39 million in engagement powered by benefit-led messaging that ensured a strong brand awareness The Company achieved a major milestone with the SBI

Card MILES influencer campaign going viral and winning the prestigious Effie India 2024 Award for marketing effectiveness. In parallel, it also strengthened customer awareness through Instagram AR filters, How-To videos, and SEO-focussed articles tailored for cardholders Multiple digital media campaigns were also launched reaching out to an audience of over 5 crore. These digital campaigns were amplified through a media mix of social platforms, e-commerce portals and publisher networks

RISK MANAGEMENT

The Company has a robust risk management framework, based on regulatory guidelines and industry best practices, comprising policies, procedures, and activities, along with tools that help it identify, assess, control, monitor, mitigate, report on, and govern risks. The risk management framework makes use of efficient tools and analytics to create insights, which enable the senior management to manage risks within the internal and external organisational context by making sound and informed risk-based decisions.

The risk management process involves a series of actions designed to reduce or eliminate potential losses, which emanate from known or unknown risks. Accordingly, a risk management framework has been implemented to enable the identification, assessment, aggregation, and reporting of risks prevailing in the processes. The risk management process is subjected to periodic review to deliver assurance that it remains appropriate and effective, aligned with the emerging risks.

The Board, along with its various committees, is responsible for overall corporate governance which includes oversight on operational, market and credit risk. The Board of Directors is responsible for approving and reviewing policies and strategic issues, which are crucial to the organisations overall growth and development and achievement of its strategic and business goals. Board designated committees, namely, Risk Management Committee of Board (RMCB), Audit Committee of Board (ACB), Stakeholder Relationship and Customer Experience Committee of the Board (SRCEC), IT Strategy Committee (ITSC), and various internal management committees, including Enterprise Risk Management Committee (ERMC), Operational Risk Management Committee (ORMC), Vendor Risk Management Committee (VRMC) Compliance Review Committee (CRC), Information Security Committee (ISC), Asset and Liability Management Committee (ALCO), Portfolio Strategy Committee (PSC), New Product Introduction Committee (NPIC) are in place for monitoring business performance and monitoring and management of various risks.

The major risks faced by the Company are credit risk, operational risk, liquidity risk, regulatory risk, reputation risk, strategic risk, cybersecurity risk and vendor risk. The Company has formulated various policies, including Risk Management Policy, Compliance Policy, ALM Policy, Credit Risk Policy, Collection Policy, Fraud Risk Management Policy, Vendor Risk

Management Policy, Information Security Policy and the Cyber Security Policy to delineate comprehensive architecture for managing these risks prudently. It has adopted qualitative and quantitative parameters to assess the materiality of risks to be included in its risk universe, which is reviewed and updated annually. The Board-approved Risk Management Policy provides guidance to the management on the desired level of risk for various types of risks and helps steer critical portfolio and strategic decisions. The Company has a Risk Appetite Statement that consists of all the Key Risk Indicators and their performance is reported to the ERMC quarterly.

Credit Risk:

Credit risk is the risk of a financial loss if the customer fails to meet their contractual obligations. Being a credit card company with retail and corporate portfolio being the earning assets, credit risk arises from all transactions that give rise to actual, contingent, or potential claims against any borrower. The goal of credit risk management is to maintain asset quality and concentration at individual exposures as well as at the portfolio level. As card dues are mostly retail in nature and are payable monthly, the assessment and monitoring of the credit portfolio is done through a review of the cardholders repayment performance and outstanding in various buckets. Besides, the Company has detailed portfolio monitoring for the corporate card portfolio as well. The collection of dues is also geared towards bucket-wise segmentation, as the behavioural pattern under different buckets differs.

The Company uses sophisticated Machine Learning (ML) based analytics and models to continuously perform a risk rating of the portfolio for determining the acceptability of risk, drawdown ability, credit limits, eligibility and sanctioning of authorisations, eligibility for instalment-based balance conversions and review frequency. Large exposures for the Companys corporate card portfolio are independently vetted by the risk management department and approved by the suitable credit committee. Risk models are governed by a Model Risk Governance process covering the life cycle of all risk models from inception, methodology, discrimination power, accuracy and stability to model calibration and retirement.

The Company also provides for its high risk and loss assets. The provisioning model is based on Ind AS guidelines, which are domestic standards based on international financial reporting standards (IFRS). The model is reviewed and validated by independent, external, subject matter experts on an annual basis. The model is also reviewed by statutory and other external auditors, as well as the Board.

Operational Risk:

The Company has set up a comprehensive Risk and Controls Self-Assessment (RCSA) process for documenting, assessing, and periodic monitoring of various risks and controls. Risks are assessed for their acceptability or unacceptability by measuring their frequency and impact An incident reporting mechanism for reporting operational risk incidents is in place

The Operational Risk Management Department works closely with all business and support functions and enables them to build an overall risk profile of the organisation, understand, and communicate the risks, and analyse changes/trends in the risk profile. The operational risk aggregation process is in place to have a holistic understanding about the risk profile at entity as well as at respective functional level.

The company has identified and developed comprehensive list of Risk appetite statements, Key Risk Management Indicators and Key Risk Indicators for all working functions which empowers the Risk management committees to monitor adherence to Risk levels and escalate the breaches promptly. These indicators ensures that the companys Risk profile is linked to business objectives, keeping strategic goal in focus A comprehensive annual review of Risk Policies is conducted, and changes are aligned in line with relevant and the latest regulatory changes. Policies are detailed, in terms of roles and responsibilities at various levels of the organisation, while managing the operational risks The Company conducts regular training on operational risk practices for the employees through classroom training as well as through online training modules

Further, the Company had taken note of RBI guidance note on operational risk management and resilience issued in April 2024 and accordingly aligned its Operational Risk policy and process manuals, including the supporting manual like RCSA, Incident loss, and KRMI/KRMI Framework to reflect strengthened governance and improved operational risk management practices. These changes provide a more structured approach to the identification, assessment, monitoring, and reporting of operational risks. Our Incident Loss Data tool (mechanism to capture incidents) has been enhanced to capture and track operational risk events with a detailed view and to take necessary action as per event outcome in terms of gaps identified.

A Risk Aggregation mechanism has been introduced to provide a comprehensive enterprise-level risk view. Further, a structured approach for acceptance or mitigation of residual high risks has been formalised, ensuring operational risks are treated and mitigated as and when risk severity is High.

Additionally, the Company is in the process of implementation of a GRC tool to automate and centralise all operational risk management related processes/activities on to a unified platform.

Information Security and Data Privacy Risk

The Companys Information Security and Cyber Security Policies are aligned with regulatory requirements. It has implemented multiple detective, preventive, and corrective measures to protect the organisations information assets, in line with the ‘Defence in Depth strategy. It logs and reports cyber security incidents and conducts frequent audits and assessments to validate adherence to various regulatory compliance requirements. The Company has strengthened its data loss prevention systems and deployed various controls to ensure the information/ data of customers, stakeholders, and employees are secure. Information Security Committee regularly reviews the performance of key information and cyber security metrics and provide directions to mitigate risks. It remains committed to Information Security and is proud to state that SBI Card is accredited with PCI-DSS 4.0 and ISO 27001:2022 standards.

Further, the Company remains steadfast in its commitment to upholding the highest standards of privacy and data protection across all its operations. In line with this commitment, it has embarked on a structured journey to achieve compliance with the Digital Personal Data Protection Act (DPDPA). As disclosed in the recently updated data privacy policy, SBI Card is committed to protecting customers personal information adhering to key data handling principles of Transparency and Fairness, Purpose Limitation, Data Minimisation, Storage Limitation, Data Security, Data Accuracy and Accountability. It also organises regular training programmes, awareness sessions for employees to keep them updated about the objectives towards data privacy and security.

Liquidity Risk

Liquidity risk arises when a Company is unable to meet its payment obligation when it falls due. This may be caused by the Companys inability to liquidate assets or obtain funding to meet its liquidity needs. The Asset Liability Management (ALM) Policy of the Company stipulates a broad framework for liquidity risk management to ensure it is able to meet its liquidity obligations as well as withstand a period of liquidity stress. Pursuant to RBI Circular on Liquidity Risk Management Framework for NBFC, the Company has introduced various key indicators in liquidity risk appetite to provide early warning signals.

The Company has also adopted a stress testing methodology to identify, measure, monitor and control risk concentrations. Integrated stress testing is performed with respect to Credit Risk, Liquidity Risk and Market Risk by envisaging three shocks, namely Mild, Moderate and Severe to assess the impact of various plausible scenarios such as historical events, macroeconomic downturns, company specific scenarios prescribed by the regulators on the Companys capital requirements.

Regulatory Risk

The Company utilises an automated tool to ensure adherence to regulations, tracking the completion of all compliance tasks. All key issues are highlighted to Enterprise Risk Management Committee, Operational Risk Management Committee and Compliance Review Committee. In addition, the Company performs independent annual assurance testing to comply with regulatory guidelines.

Reputation Risk

As a part of the service industry, managing reputation risk is of paramount importance. Therefore, the Company monitors customer complaints resolution, social media complaints, and negative media incidents and obtain real-time feedback to measure the voice of customers.

Strategic Risk

Strategic Risk arises due to a wrong business model or lack of medium- or long-term planning. It may also arise due to a lack of awareness about competition or a changing business environment. The Board is actively engaged in providing strategic direction to the Company and is constantly trying to introduce innovative products to maintain and increase its competitive advantage in the industry.

Vendor Risk

The Company engages with multiple third parties or vendors for multiple services across geographies. Failure to manage risks arising out of vendor risk may result in significant loss, reputational damage, and/or legal and regulatory issues. It has adopted a Vendor Risk Management Policy detailing guidelines on vendor risk assessments. All vendor onboardings and risk assessments completed on the VRM VOB tool, which act as sole source of truth for all vendor related requirements.

All outsourcing arrangements are examined and approved only after a due diligence process, including financial, reputation, information security, compliance, and business continuity risk assessment. The Business Continuity (BCP) framework is in place to ensure continuity of service to its large customer base. The effectiveness of the approved Business Continuity Plan

(BCP) framework is tested for all identified critical internal activities to ensure continuity of services and readiness to meet various contingency scenarios. The learning from the BCP exercises is used as an input to further refine the framework.

OPERATIONS AND CUSTOMER SERVICING

The Company is committed to delivering exceptional customer service through innovation, empathy, and operational excellence. With an unwavering focus on customer-centricity, it continues to evolve its servicing ecosystem – leveraging automation, AI, analytics, and streamlined processes – to provide seamless, personalised, and responsive experiences across all the channels.

The Companys strategic focus on customer-first transformation, driven by technology, data insights, and empathy, has significantly elevated the service experience to proactive complaint resolution to omnichannel convenience and AI-powered decision-making, the organisation continues to lead with innovation and accountability. These efforts not only strengthen customer satisfaction and loyalty, but also ensure that the service ecosystem is future-ready, scalable, and deeply aligned with the evolving customer expectations.

TECHNOLOGY

SBI Card has been committed to digitising the journey, across the entire lifecycle of a credit card, from new accounts to collections powered by artificialintelligence and data analysis, built on a strong infrastructure to enable growth in the payment ecosystem, while protecting its customers.

SBI Card has continued to innovate and launch new products and services that cater to the evolving needs of its customers. Its innovative offerings have been well-received in the market, resulting in increased customer satisfaction and loyalty.

166 Integrated Annual Report 2024-25

The Company rolled out several new IT programmes to introduce new digital technologies, enhance customer

. From experience and fulfil compliance requirements.

During the year, SBI Card also made significant towards digitisation by launching some of the key initiatives such as SBI Card SPRINT Expansion, Pre-screening & Dedupe Automation, Hyper Personalisation, WhatsApp Expansion, On Demand CLI (Credit limit increase), EMI on UPI, and UPI limit Slider, etc.

DIGITAL SOURCING & PROCESSING

The Company released multiple key projects to enhance its digital sourcing:

SBI Card Digital New Accounts Platform SBI Card SPRINT has been integrated with SBI YONO app and Internet Banking. This platform gives the ability to increase end-to-end digital penetration by offering a completely online journey for SBI Bank customers to get the right fit card for their needs. Nearly 8.6 lakh credit cards were onboarded through this channel during the financial year.

AI Interventions:

Pre-screening Automation: Pre-screening step for digital applications has been automated using AI

Dedupe Automation: This project enabled auto-decisioning of new card application which were previously done by processing agents manually

Arohan Initiatives: Digital sourcing team has improved the application processing capability and digital processing by integrating with multiple channels such as Telco integration, EPFO with OTP, GST with OTP, GST without OTP, and Form26AS, among others

Digital Servicing:

In its endeavour to empower its customers, SBI Card has introduced many new self-service capabilities on its digital channels, which includes enhancing WhatsApp servicing, Revamped of Mobile App for Android and Apple users.

SBI Card WhatsApp Channel has been expanded with more functionality for customer service and over 10 million user registrations

SBI Card Mobile Application has been revamped and a completely new look and feel with user friendly navigation has been provided. The new look home screen and ease of navigation has been well received by the customers. The new platform also provides advanced security features to its customers

On Demand CLI (Credit limit Increase) programme has been launched for better customer engagement and instant limit increase on digital channels. This offers real-time credit limit increase with real-time Account aggregator (AA) integration

Live Chat Launch: Live chat has been integrated with Ask ILA chatbot in mobile app. This ability offers the customers to chat in real time with our servicing agents, resulting in

70% reduction in e-mail traffic via SBI Card mobile app

Expansion of UPI with key releases such as Credit on UPI and Limit Slider for UPI Transaction for both primary and add-on credit card

Compliance and Security: This year, SBI Card implemented key initiatives to strengthen its security. Few of these are as below:

Flexibility to the customer for Network Selection: This feature has been given for new card and card renewal in line with RBIs circular on offering freedom of select network by the customer

Project Atlas launch: It also offers data dictionary set-up for definitions of key data elements in the Company

DATA SCIENCE EXPANSION

The Company has invested in Data Lake, which brings data from multiple core platforms into one place. This year, the Hyper-personalisation service was launched to improve campaign management.

Hyper-Personalisation: SBI Card has achieved a key milestone of migration to a newly built Hyper-personalisation platform from traditional campaign management. Multiple campaigns have been moved with improved operational excellence and better throughput

Single Source of Truth: The functional dashboards were enhanced bringing significant almost 12K+ data points across 180+ metrics with multiple slice-and-dice options

STRONG, SCALABLE, RELIABLE AND SECURE INFRASTRUCTURE

All the Companys business enablers are built up on a strong foundation with 24/7 availability across all IT systems with a strong disaster recovery set-up for all mission-critical applications. It has created its own intellectual property, consisting of applications to run the business processes and serve its customers efficiently.

During the year, SBI Card further strengthened the infrastructure by introducing key initiatives such as Originations - 360 Upgrade, Application & Infrastructure Cloud Monitoring Tool and Cloud Dialer services and these were integrated with originations (WCP) platform for verification

COMPLIANCE

The Company is committed to the highest compliance standards by adopting a robust and independent compliance programme that adheres to all regulatory and ethical requirements. It has established a comprehensive compliance framework to effectively manage all compliance risks. This framework includes a Board-approved compliance policy outlining the governance structure, detailed Code of Conduct guidelines, and other essential elements. The Company also has a Board-approved Fair Practice Code, KYC/AML Policy and Compliance Policy in place.

All areas of compliance are managed under a shared framework of prevention, detection, and response. This framework has been developed with a specific focus on maintaining adherence to all applicable regulatory norms with a strong operating rhythm through regular reviews with the senior management team.

A functional compliance framework has also been set up, wherein each function is educated on its regulatory obligations; metrics of their processes are prepared to ensure compliance and an ongoing tracking/ review is conducted in the Compliance Review Committee. The Compliance Programme also has a proactive assurance process that tests the controls governing key compliance areas.

The Company reviews all new products and processes, and ensures that its internal policies address the regulatory requirements comprehensively. It also aims to continuously strengthen the culture of integrity and ethics through employee awareness and education on key compliance themes and regulatory obligations through various modes like e-learning sessions, leadership connect, focus group sessions, location connect, and online knowledge checks, among others. A comprehensive compliance training programme ensures continuous employee education and awareness for all the new and existing employees.

INTERNAL AUDIT

The Internal Audit team of the Company provides independent and objective assurance to the management on the effectiveness of Risk Management, Governance and Regulatory compliance of the organisation, besides contributing to the effectiveness of the internal controls in achieving the corporate objectives. The internal audit team is responsible for planning and conducting risk based internal audits across functions and processes. The risks associated with the business and various processes are identifiedas part of the risk assessment exercise. The internal audit team ensures that all identified risks and corresponding controls are covered as part of the audit process. The audit process incorporates elements designed to assess potential risks to organisational business performance, business objectives, business sustainability, and reputational risk.

All key risk policies are reviewed and audited by the auditors to ensure that the design of the process addresses the potential risks, and that the process is correctly implemented to give the desired results. The Companys Internal Audit team operates under the supervision of the Audit Committee of the Board (ACB), thereby ensuring its independence. The effectiveness of internal controls in terms of the Companys internal processes and regulatory guidelines are regularly reviewed by the ACB, and wherever necessary, the directions are passed for the required compliance.

HUMAN RESOURCES

The overall employee strength of the Company stood at 4,098 as on March 31, 2025. Strong and stable senior management have an average tenure of 11.7 years with the organisation. The year witnessed some strong HR initiatives around all aspects of the employee lifecycle, as mentioned below:

Talent Acquisition Strategy

To support its business growth, digital transformation and ESG priorities, SBI Card has developed a comprehensive Talent Acquisition Strategy focussed on attracting diverse talent, nurturing internal capability, and leveraging technology to enhance hiring efficiency. The strategy is anchored in five key pillars that collectively enable the organisation to build a future-ready and inclusive workforce.

Inclusive Recruitment

SBI Card is an equal opportunity employer and is committed to fostering a diverse and inclusive workplace. Efforts to enhance gender diversity continued, with women representation maintained at 27%. Exclusive roles suitable for women were identified to support this initiative. Additionally, the Company actively participated in job fairs organised by NGOs, aiming to tap into under-represented talent pools. As a result, the Company enhanced the inclusion of persons with Special ability in FY 2024-25

To build awareness and reduce any unconscious bias in hiring practices, bias-awareness training sessions were conducted as part of the First-Time Manager training programme, fostering a more inclusive recruitment process.

Internal Mobility and Career Progression

SBI Card continues to promote a culture of internal growth and career advancement. In FY 2024–25, 20% of open roles were filled through internal job postings, enabling employees to explore new roles and contribute across different functions. This focus on internal mobility not only enhanced employee engagement and retention, but also ensured that institutional knowledge is retained and leveraged within the organisation.

Digital and Data-Driven Hiring

As part of its digital transformation agenda, SBI Card implemented a robust Applicant Tracking System (ATS) across all business verticals. This initiative significantly improved recruitment efficiency and enhanced the overall candidate experience. The digitisation of the hiring lifecycle enabled real-time tracking of applications, streamlined documentation, and the generation of system-based reports that provide transparency and insights at every stage of the process. Additionally, training modules were developed to equip hiring managers with the necessary skills to navigate the ATS effectively, further strengthening adoption and operational excellence.

DRIVING STRATEGIES IMPACT THROUGH DIGITAL TRANSFORMATION

At SBI Card, the Human Resources function is undergoing a transformative journey to align with the evolving needs of a dynamic and digitally driven organisation. Recognising the pivotal role of technology in enabling business agility, efficiency, and employee experience, HR is strategically embracing digital solutions to future-proof its operations and to create lasting value.

From reimagining traditional HR processes to implementing next-generation platforms, SBI Cards HR leverages advanced technologies to drive smarter decision-making, improve operational transparency, and deliver superior employee services. The adoption of data-driven systems, intelligent automation, and user-friendly digital interfaces is empowering HR to move beyond administrative functions to become a proactive partner in organisational growth.

Key initiatives include the digitisation of core functions such as payroll, talent acquisition, performance management, and employee engagement. These platforms are integrated with robust analytics, real-time dashboards, and secure, and scalable architecture, ensuring alignment with both compliance standards and strategic business goals.

Moreover, the HR team is continuously upskilling its teams and embracing a culture of innovation, collaboration, and continuous improvement. The focus is not just on technological adoption, but on creating a seamless, personalised, and impactful employee experience at every touchpoint.

As SBI Card continues its growth trajectory, HR remains at the forefront championing a digital-first mindset and reinforcing its commitment to building a responsive, resilient, and future-ready workforce.

CORPORATE SOCIAL RESPONSIBILITY

The Company has marked its presence through CSR initiatives to strengthen public infrastructure, benefiting thousands of needy individuals, including youth, women, elderly and people with disabilities in areas of education, health, disaster management, rural development, environment sustainability and skill development. A detailed description of the Companys CSR activities and its impact has been provided in the CSR section of the Annual Report.

FINANCIAL PERFORMANCE

Given under is a snapshot of the financial results for the year ended March 31, 2025, as compared with the previous year: (In crore)

Total Income	18,637	17,484	7%
Finance Costs	3,178	2,595	22%
Operating Costs	8,007	8,369	-4%
EBCC	7,452	6,519	14%
Credit Costs	4,872	3,287	48%
PBT	2,581	3,232	-20%
PAT	1,916	2,408	-20%

Total Income increased from 17,484 crore in FY 2023-24 to 18,637 crore in FY 2024-25, registering 7% YoY growth. Interest Income rose 18%, increasing from 7,927 crore in FY 2023-24 to 9,347 crore in FY 2024-25, aligning with a 17% rise in average receivables. The portfolio yield in FY 2024-25 stood at 16.7%, remaining unchanged from the previous year Fees and commission income decreased 3% from 9,041 crore in FY 2023-24 to 8,725 crore in FY 2024-25, primarily driven by lower corporate spends and resultant interchange income. Lower interchange income on corporate spends was largely offset through lower rebate on corporate spends leading to lower operating expenses Finance costs increased by 22% from 2,595 crore in FY 2023-24 to 3,178 crore in FY 2024-25. The increase was driven by 17% YOY growth in average receivables as well as higher cost of funds at 7.4% in FY 2024-25 compared to 7.2% in FY 2023-24.

Operating Costs were lower in FY 2024-25 at 8,007 crore, compared to 8,369 crore in FY 2023-24 on account of lower new accounts and lower rebate on corporate spends. As a result, Cost to Income ratio was favourable at 51.8% in FY 2024-25 vis-?-vis 56.2% in FY 2023-24.

BREAK-UP OF OPERATING EXPENSES

(In crore)

Particulars	FY25	FY24	% Change
Fee and Commission	633	1,642	-61%
Employee Benefit Expenses	590	570	3%
Depreciation, Amortisation	147	197	-25%
and Impairment
Operating and	6,637	5,960	11%
other Expenses
Operating Expense	8,007	8,369	-4%

Gross credit costs as a percentage of average receivables increased from 7.1% in FY 2023-24 to 9.0% in FY 2024-25. Net credit costs (after deducting recoveries from bad debts) as a percentage of average receivables increased from 6.0% to 7.9% during the same period. To address the increasing credit cost, the Company has taken a wide range of actions covering entire life cycle of a credit card from changing the sourcing/underwriting criteria, model upgrades, use of alternate data, portfolio management actions such as credit line decreases, refining collections strategies and intensifying collection efforts.

Earnings before credit costs increased by 14% from 6,519 crore in FY 2023-24 to 7,452 crore in FY 2024-25, Profit After

Tax declined 20% on account of higher credit costs.

BALANCE SHEET AS OF MARCH 31, 2025:

Total balance sheet size increased by 13% from 58,171 crore as on March 31, 2024, to 65,546 crore as on March 31, 2025 Net Worth increased 14% from 12,156 crore as on March 31, 2024, to 13,853 crore, as on March 31, 2025 Gross Credit Card Receivables increased 10% from 50,846 crore as on March 31, 2024, to 55,840 crore as on March 31, 2025

ASSET QUALITY

Gross non-performing assets as a percentage of gross advances (GNPA) increased from 2.76% as on March 31, 2024, to 3.08% as on March 31, 2025. Net non-performing assets as a percentage of gross advances (NNPA) increased from 0.99% to 1.46% during the same period.

CAPITAL ADEQUACY AND LIQUIDITY

As per the capital adequacy norms issued by the RBI, the Companys capital to risk ratio (CRAR) consisting of Tier I and Tier II capital should not be less than 15% of its aggregate risk-weighted assets on the balance sheet and of the risk-adjusted value of off-balance sheet items. The Companys CRAR stood at 22.9% as on March 31, 2025, compared to 20.5% as of March 31, 2024.

The Tier I capital in respect of an NBFC-ND-SI, at any point in time, is required to be not less than 10%. Tier I capital was at 17.5% as of March 31, 2025, compared to 16.5% as of March 31, 2024.

The Company enjoys the highest credit rating from CRISIL and ICRA for both short-term and long-debt programmes, as below: CRISIL Long-Term - AAA/Stable CRISIL Short-Term - A1+ ICRA Long-Term - AAA/Stable ICRA Short-Term - A1+

The high credit ratings depict the robustness of the Companys liquidity position and its strong ability to meet financial obligations. The Company has access to a diverse source of funds, and its borrowing composition consists of multiple bank lines, term loans and debentures. As on March 2025, the Company had 11,026 crore of unutilised banking limits, which is 27% of sanctioned banking limits and is more than sufficient to meet its future obligations. The Company also has a robust Asset Liability Management process and its Asset Liability position as of March 31, 2025 has positive cumulative mismatches across all buckets.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

There is only a single reportable segment of credit cards, as envisaged by Ind AS 108 Segment reporting, specified under section 133 of the Companies act 2013, read with Rule 7 of the Companies (Accounts) Rules 2014. Further, the economic environment in which the Company operates is significantly similar and not subject to materially different risks and rewards. Accordingly, as the Company operates in a single business and geographical segment, the reporting requirement for primary and secondary disclosures prescribed by Ind AS 108 are not required to be given.

KEY RATIOS

Particulars	FY25	FY24	Change
Interest Income Yield	16.7%	16.7%	2bps
Net Interest Margin	10.8%	11.1%	-24bps
Cost to Income	51.8%	56.2%	-442bps
Return on Average Assets	3.1%	4.6%	-149bps
Return on Average Equity	14.6%	21.7%	-710bps
EPS (Basic)	20.15	25.39	-21%
Financial Leverage (Debt/	4.3	4.4	-2%
Equity = Liabilities/Tier 1
Equity)
Total Capital Adequacy Ratio	22.9%	20.5%	234bps
Gross NPA	3.08%	2.76%	31bps
Net NPA	1.46%	0.99%	47bps

EXPLANATION OF RETURN ON AVERAGE EQUITY

Earning before credit costs (EBCC) as a percentage of average Asset stood at 12.1% in FY 2024-25, compared to 12.5% in

FY 2023-24. The increased credit costs led to lower profits in

FY 2024-25, compared to FY 2023-24, resulting in a reduced ROA of 3.1% versus 4.6% in the earlier year. Consequently, lower PAT has also led to a decrease in ROE.

The table below summarises the computation of these ratios

ROA TREE AS A PERCENTAGE OF AVERAGE TOTAL ASSETS

Particulars	FY25	FY24	Change
Total Income	30.4%	33.5%	-315bps
Finance Costs	5.2%	5.0%	20bps
Operating Costs	13.0%	16.0%	-300bps
EBCC	12.1%	12.5%	-36bps
Credit Costs	7.9%	6.3%	164bps
PBT	4.2%	6.2%	-199bps
Taxes	1.1%	1.6%	-50bps
PAT (ROAA) (A)	3.1%	4.6%	-149bps
Average Assets/Average	4.68	4.71
Equity (B)
ROAE= (A*B)	14.6%	21.7%	-710bps

PROSPECTS

Indias digital payment industry, alongside retail lending, has experienced significant and regulatory bodies are actively promoting digital payments nationwide. Credit card penetration in India still remains lower than in the advanced economies, presenting substantial growth prospects for the Company. To enhance its market share in both spends and card issuance, while ensuring profitable growth, the Company has identified focus areas which have been discussed earlier in this section.