SBI Cards profit jumps 75% as credit costs ease

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 SBI Cards and Payment Services Limited (

) reported net profit of ₹778 crore in Q2 FY27, up 74.8% year-on-year from ₹445 crore. Total revenue increased by approximately 3.6% to ₹5,141 crore. What happened? Impairment losses on financial instruments declined to ₹819 crore from ₹1,293 crore a year earlier, supporting the sharp increase in profitability. Cards in force grew 8% year-on-year to 2.32 crore, while card spends increased 3% to ₹1.11 lakh crore. Asset quality also improved, with the gross NPA ratio declining to 1.90% from 2.85% a year earlier. Why does it matter? The profit growth was driven largely by lower credit costs rather than strong revenue expansion. Improving asset quality is encouraging, but the sustainability of these gains depends on repayment trends and the company's ability to manage credit risk as its portfolio grows. My view The quarter reflects a meaningful improvement in profitability and asset quality. However, the relatively modest revenue growth suggests that the next phase of performance will depend on sustainable business growth alongside disciplined credit management. What I am watching next I would track credit costs, delinquency trends, card spends, new customer additions and revenue growth to assess whether improved profitability can be sustained. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in SBI Cards and Payment Services Limited.