SBI Cards Shares Surge 2.5% on RBI's Risk Weight Cut Proposal, Buoyant Analyst Outlook

ds and Payment Services Ltd's stock climbed 2.5% to Rs 927 – its highest since July 14 – buoyed by the Reserve Bank of India's proposed overhaul of credit loss norms and upbeat brokerage commentary. The RBI's draft framework slashes risk weights on select loans, including credit cards, from 150% to 75%, easing capital burdens for lenders. Macquarie highlighted the move as a boon for SBI Cards, freeing up nearly 450 basis points in capital for growth initiatives like expansion and tech upgrades. Echoing the optimism, Motilal Oswal forecasts robust corporate and retail spending growth post-GST rate reductions, with gradual improvements in asset quality. "This tailwind positions SBI Cards for steady profitability," the firm noted. On average, 25 analysts rate the stock a "hold," with a median price target of Rs 935, per LSEG data. As consumer credit demand heats up, the stock's rally signals renewed investor confidence in India's payments powerhouse.