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India's SBI Card posts higher quarterly profit on improving asset quality

By Reuters News

BENGALURU, Oct 23 (Reuters) - India's SBI Cards and Payment Services SBIC.NS reported a rise in second-quarter profit on Friday, helped by an improvement in its asset quality and a drop in provisions.

  • The credit card firm, a unit of State Bank of India SBI.NS, said its profit after tax rose to 7.78 billion rupees ($81.9 million) for the quarter ended September 30, from 4.45 billion rupees last year.

  • The company has steadily tightened credit underwriting over the last few quarters to tackle asset quality stress and higher delinquencies in credit cards.

  • As a result, SBI Card's asset quality improved, with gross non-performing assets at 1.90% as of September-end, down 14 basis points from three months earlier.

  • Meanwhile, loan loss provisions also dropped 36.6% year-on-year to 8.19 billion rupees.

  • Credit growth sustained strong momentum in the second quarter of fiscal 2027, after picking up in the second half of the previous year. Analysts expected card spends to remain steady in the reported quarter, led by growth in corporate spends and steady retail spending.

  • SBI Cards reported a 3% on-year rise in total card spending to 1.11 trillion rupees.

  • Its total revenue from operations rose 3.6% year-on-year to 51.41 billion rupees.

  • Cards-in-force, or the sum of all credit cards issued, rose 8% from a year earlier to 23.2 million.


($1 = 94.9700 Indian rupees)

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