Pure play credit card issuer SBI Cards and Payment Services Ltd on Thursday (September 12) announced that its board of directors will meet on Wednesday, September 18, 2024, to discuss and approve a proposal to raise funds amounting to ₹5,000 crore through the issuance of non-convertible debentures (NCDs).

The funds will be raised via private placement in one or more tranches over a specified period.

“We hereby inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, September 18, 2024, inter alia, to consider and approve the proposal, for raising of funds through issuance of non-convertible debentures (NCDs) aggregating to ₹5,000 crore through private placement, in one or more tranches over a period of time,” according to a stock exchange filing.

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SBI Cards reported a 0.2% year-on-year (YoY) increase in net profit at ₹594.5 crore for the first quarter that ended June 30, 2024. In the corresponding quarter, SBI Cards and Payment Services posted a net profit of ₹593.3 crore. The company’s revenue from operations increased 11.4% to ₹4,358.6 crore against ₹3,911.9 crore in the corresponding period of the preceding fiscal.

The number of cards-in-force increased by 11% YoY, reaching 1.92 crore as of Q1 FY25 compared to 1.73 crore in Q1 FY24. Despite this growth, the volume of new accounts opened during the quarter saw a decline, with 904,000 new accounts in Q1 FY25 versus 1,097,000 new accounts in Q1 FY24.

Consumer spending on SBI cards also experienced an uptick, growing by 4% YoY. Total spending for Q1 FY25 stood at ₹77,129 crore compared to ₹73,913 crore in the same period last year. Additionally, receivables saw a substantial 22% increase, amounting to ₹52,705 crore in Q1 FY25, up from ₹43,271 crore in Q1 FY24.

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Shares of SBI Cards and Payment Services Ltd ended at ₹802.15, up by ₹5.90, or 0.74%, on the BSE.