SBI Cards and Payment Services Limited reported a strong year-on-year increase in net profit for the second quarter of FY27, supported by improving asset quality and lower provisions for potential credit losses.
The credit card issuer reported profit after tax (PAT) of ₹778 crore for the quarter ended September 30, 2026, compared with ₹445 crore in the corresponding quarter of the previous financial year, marking an increase of approximately 75%.
SBI Cards Q2 Results : Key Financial Highlights
- Net profit: ₹778 crore, up approximately 75% year-on-year from ₹445 crore.
- Revenue from operations: ₹5,141 crore, an increase of 3.6% year-on-year.
- Total card spends: ₹1.11 lakh crore, up 3% year-on-year.
- Cards-in-force: 2.32 crore, an increase of 8% year-on-year.
- Gross non-performing assets (GNPA): 1.90% as of September 30, 2026.
The company’s financial performance reflected improved credit portfolio quality and a reduction in provisions for expected credit losses.
Lower Provisions Support Profit Growth
A key factor behind the increase in SBI Cards’ quarterly profit was the decline in provisions for potential loan losses. Provisions fell 36.6% year-on-year to ₹819 crore during the quarter.
Lower provisions helped support profitability as the company continued to manage stress and delinquencies in its credit card portfolio. The company has tightened its credit underwriting practices over recent quarters to improve the quality of its loan book.
Asset Quality Shows Improvement
SBI Cards reported gross non-performing assets of 1.90% at the end of September 2026, down 14 basis points from three months earlier.
The improvement indicates a reduction in the proportion of credit card receivables classified as non-performing. Asset quality remains an important factor for credit card issuers because overdue payments and defaults can increase credit costs and affect profitability.
Card Spending and Customer Base
Total card spending reached ₹1.11 lakh crore during the quarter, increasing 3% compared with the year-ago period. The number of cards-in-force grew 8% year-on-year to 2.32 crore.
While card spending continued to expand, revenue from operations grew at a more moderate pace of 3.6%. The performance of card spending, customer acquisition, and credit costs will remain important indicators of the company’s operating momentum.
What to Watch Next
Going forward, key factors to monitor include credit card spending growth, new card additions, asset quality, credit costs and the company’s ability to sustain profitability while managing defaults. The trend in provisions will also be important in assessing whether the recent improvement in earnings can continue.
Conclusion
SBI Cards and Payment Services reported a 75% year-on-year increase in Q2 FY27 net profit to ₹778 crore. Lower provisions and improving asset quality supported the earnings growth, while revenue from operations and total card spending recorded more moderate increases.
The company’s performance in the coming quarters will depend on spending trends, customer growth, credit quality and the management of credit-related expenses.
If you want to know which upcoming Q2 earnings reports are dropping? Check out Upcoming Q2 Results
Source: Reuters; SBI Cards and Payment Services corporate announcements.
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