SBI Cards and Payment Services reported a 75% year-on-year increase in net profit to ₹777.6 crore for the second quarter of FY27, supported by improving asset quality and a sharp decline in loan-loss provisions. Total income rose approximately 3% to ₹5,301.67 crore, while revenue from operations increased 3.6% to ₹5,141 crore for the quarter ended September 30, 2026.
The results, announced on October 23, highlight a significant improvement in profitability despite relatively modest revenue growth. Gross non-performing assets (NPAs) declined to 1.90%, while loan-loss provisions fell 36.6% year-on-year to ₹819 crore. The performance suggests that tighter credit underwriting and lower credit-related expenses helped the credit card issuer convert a modest increase in business activity into substantially higher earnings.
Key Takeaways
- Net profit: Rose 75% year-on-year to ₹777.6 crore from ₹444.8 crore.
- Total income: Increased approximately 3% to ₹5,301.67 crore.
- Revenue from operations: Grew 3.6% to ₹5,141 crore.
- Loan-loss provisions: Fell 36.6% to ₹819 crore.
- Gross NPA ratio: Improved to 1.90%, down 14 basis points from the June quarter.
- Credit card spending: Increased 3% year-on-year to approximately ₹1.11 trillion.
- Cards in force: Rose 8% to 23.2 million, or 2.32 crore cards.
SBI Card Q2 FY27 Results: Financial Performance
SBI Card’s September-quarter results show that earnings grew much faster than revenue. The improvement was supported by lower provisions for potential credit losses and better portfolio quality.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Net profit | ₹777.6 crore | ₹444.8 crore | +74.8% |
| Total income | ₹5,301.67 crore | ₹5,136 crore | Approximately +3% |
| Revenue from operations | ₹5,141 crore | ₹4,961 crore | +3.6% |
| Loan-loss provisions | ₹819 crore | Approximately ₹1,292 crore | -36.6% |
| Gross NPA ratio | 1.90% | — | Improved |
| Credit card spending | ₹1.11 trillion | — | +3% |
| Cards in force | 2.32 crore | Approximately 2.15 crore | +8% |
Figures are rounded where appropriate. Sources: Business Standard and Reuters.
The results show that the company expanded its card base and spending volumes while benefiting from a reduction in expenses associated with expected credit defaults. The distinction between income growth and profit growth is important when assessing the sustainability of the quarter’s performance.
Why Did SBI Card’s Profit Rise 75%?
The primary factor was the decline in loan-loss provisions.
Credit card companies set aside money to cover expected losses when customers fail to repay their outstanding balances. These provisions are recorded as expenses and can significantly affect quarterly earnings.
SBI Card’s provisions declined 36.6% year-on-year to ₹819 crore. The reduction followed efforts to tighten credit underwriting and address stress from overdue payments over previous quarters.
As the quality of the credit portfolio improved, the company needed to set aside less money for potential losses. That helped lift profit even though revenue growth remained in the low single digits.
However, lower provisions do not necessarily mean that credit risk has disappeared. Future results will depend on whether repayment behavior remains stable, whether new customers maintain healthy repayment patterns and whether economic conditions affect borrowers’ ability to pay.
Asset Quality Improves as Gross NPAs Fall
Asset quality is a critical indicator for a credit card issuer because unpaid balances can eventually turn into losses.
SBI Card’s gross NPA ratio stood at 1.90% at the end of September 2026, down 14 basis points from three months earlier. The improvement suggests that the proportion of advances classified as non-performing declined during the quarter.
The company has tightened credit underwriting in recent quarters to address rising delinquencies and credit stress. More disciplined lending can reduce the risk of issuing cards to customers who may struggle to repay their balances.
The decline in NPAs and provisions provides a clearer explanation for the sharp profit increase than revenue growth alone. Nevertheless, investors will need to monitor whether these improvements persist as the company continues to add customers.
Credit Card Spending and Customer Base Continue to Expand
SBI Card reported a 3% year-on-year increase in total card spending to approximately ₹1.11 trillion during Q2 FY27.
Its cards-in-force increased 8% to 23.2 million, equivalent to 2.32 crore cards. This indicates that the company expanded its card base faster than spending grew during the quarter.
| Business indicator | Q2 FY27 performance | Growth |
|---|---|---|
| Total card spending | ₹1,10,689 crore | +3% year-on-year |
| Cards in force | 2.32 crore | +8% year-on-year |
| Revenue from operations | ₹5,141 crore | +3.6% year-on-year |
Source: Reuters and Business Standard.
Card spending is an important measure because it reflects customer usage, although higher spending does not automatically translate into higher profits. Revenue also depends on fees, interest income, transaction economics and the cost of funding and servicing cardholders.
The company will need to balance customer acquisition with underwriting discipline to ensure that portfolio expansion does not lead to a renewed increase in overdue payments.
What the Results Mean for SBI Card’s Business
The quarter illustrates how credit quality can influence earnings at a financial services company.
A credit card issuer may experience moderate growth in spending and revenue but still report a substantial increase in profit when credit-loss expenses decline. Conversely, an increase in delinquencies can quickly pressure earnings by requiring larger provisions.
For SBI Card, the latest figures indicate improvement across two important areas: the gross NPA ratio moved lower and provisions fell significantly. At the same time, spending and the number of cards in force continued to grow.
The key question is whether the company can maintain this balance. Sustained profitability will depend on customer repayment behavior, credit costs, spending activity and the company’s ability to grow without weakening underwriting standards.
The Bigger Picture
SBI Card’s Q2 FY27 performance comes amid continued competition in India’s credit card market, where issuers must balance customer growth with the risk of unsecured consumer lending. Better asset quality can strengthen profitability, but rapid expansion without effective credit controls can reverse those gains.
The results underline why investors should examine more than headline profit growth. Revenue, spending, cards in force, gross NPAs and provisions together provide a more complete view of the company’s financial performance. If asset quality remains stable and business volumes continue expanding, SBI Card may be better positioned to sustain earnings. If credit stress returns, however, higher provisions could put pressure on future profits.
FAQs
1. What was SBI Card’s Q2 FY27 net profit?
SBI Cards and Payment Services reported net profit of ₹777.6 crore for the quarter ended September 30, 2026, up approximately 75% from ₹444.8 crore a year earlier.
2. Why did SBI Card’s profit increase so sharply?
The main reported drivers were improved asset quality and a 36.6% year-on-year decline in loan-loss provisions to ₹819 crore. Lower credit-related expenses helped boost earnings despite modest revenue growth.
3. What was SBI Card’s revenue in Q2 FY27?
Revenue from operations increased 3.6% year-on-year to ₹5,141 crore. Total income was approximately ₹5,301.67 crore.
4. What was SBI Card’s gross NPA ratio?
SBI Card’s gross NPA ratio stood at 1.90% at the end of September 2026, down 14 basis points from the previous quarter.
5. How much did SBI Card’s credit card spending grow?
Total card spending increased 3% year-on-year to approximately ₹1.11 trillion, while cards in force rose 8% to 23.2 million.
Looking Ahead
SBI Card’s next quarterly results will help establish whether the improvement in asset quality and reduction in provisions can be sustained. Investors will be watching gross and net NPA ratios, credit-loss provisions, spending growth and customer additions to assess whether the company can maintain earnings momentum without taking on excessive credit risk.
The latest quarter demonstrates how improved repayment trends can strengthen a credit card issuer’s profitability even when revenue growth is moderate. Continued performance will depend on disciplined underwriting, responsible portfolio expansion and the company’s ability to manage delinquencies as competition in India’s credit card market evolves.
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