SBI Cards Q2 revenue jumps 75% YoY to Rs 778 crore as unhealthy mortgage prices fall sharply

SBI Cards and Payment Services reported a 75% year-on-year rise in internet revenue to Rs 778 crore for the September quarter, pushed by a pointy decline in credit score prices and enchancment in asset high quality, at the same time as company card spends contracted and excellent receivables declined. The firm had reported a internet revenue of Rs 445 crore within the corresponding quarter final yr.

Total revenue elevated 3% year-on-year to Rs 5,302 crore from Rs 5,136 crore. Impairment losses and bad debt expenses declined 37% year-on-year to Rs 819 crore from Rs 1,293 crore, offering a major enhance to profitability. The firm’s net interest margin narrowed by 42 foundation factors year-on-year to 10.8%.

“During Q2 of FY27, we continued to deal with constructing a wholesome, sustainable and well-balanced portfolio, whereas sustaining our priorities round worthwhile buyer acquisition, buyer engagement, working effectivity and portfolio high quality,” mentioned Salila Pande, MD, SBI Cards throughout the publish earnings analyst name.

The firm’s gross non-performing asset (GNPA) ratio improved to 1.90% at September-end from 2.85% a yr earlier, whereas the online NPA ratio declined to 0.77% from 1.29%. Gross write-offs fell 34% year-on-year to Rs 849 crore, reflecting an enchancment within the credit score high quality of its portfolio.

However, progress within the underlying trade remained modest. Overall bank card spends elevated simply 3% year-on-year to Rs 1.11 lakh crore from Rs 1.07 lakh crore. While retail spends rose 6% to Rs 95,299 crore from Rs 89,611 crore, company card spends declined 12% to Rs 15,390 crore from Rs 17,452 crore.

Outstanding receivables contracted 2% year-on-year to Rs 58,376 crore from Rs 59,845 crore, regardless of an growth within the buyer base. Interest-earning receivables accounted for about 55% of the portfolio.

The variety of playing cards in pressure elevated 8% year-on-year to 2.32 crore from 2.15 crore. New account acquisitions rose 18% to 11.06 lakh throughout the quarter, in contrast with 9.36 lakh within the year-ago interval.Despite the growth in its card base, SBI Cards’ market share in excellent playing cards declined to 18.5% from 19% a yr earlier. Its market share in spending, nevertheless, improved to 18.2% from 17.7%, reflecting a rise in its share of business transaction worth.

The firm additionally made a further impairment provision of Rs 30 crore throughout the quarter, citing uncertainty within the macroeconomic atmosphere on account of extended geopolitical tensions. This took the cumulative further impairment provision to Rs 100 crore at September-end.

“Our ahead agenda rests on 5 levers, increasing our footprints into Tier 2 and Tier 3 financial hubs, specializing in banker penetrations, deepening premiumisation and spend per card, optimisation of credit score prices, enhancing our digital and knowledge analytics capabilities and sustaining cross-discipline,” Pande mentioned.