SBI Cards and Payment Services, the credit-card unit of State Bank of India, reported on Friday that its profit after tax rose 75 per cent year-on-year to Rs 778 crore for the second quarter of fiscal 2027, the quarter ended September 30, 2026, helped by an improvement in asset quality and a drop in provisions, Reuters reported via The Hindu BusinessLine.

Source: The Hindu BusinessLine (Reuters) — SBI Card posts higher quarterly profit on improving asset quality (Oct 23, 2026)

The profit jump was driven mainly by lower credit costs. Impairment losses and bad-debt expenses fell 37 per cent to Rs 819 crore, from Rs 1,293 crore in the same quarter a year earlier, according to the company's regulatory filing reported by APAC News Network and Trade Brains. Earnings before credit costs eased 1 per cent to Rs 1,865 crore.

Asset quality improves after tighter underwriting

Gross non-performing assets stood at 1.90 per cent at the end of September, down 14 basis points from three months earlier and 95 basis points lower than a year ago, with net NPAs at 0.77 per cent, ScanX reported from the filing. Reuters noted the company has steadily tightened credit underwriting over the last few quarters to tackle asset-quality stress and higher delinquencies in credit cards.

Source: ScanX — SBI Cards Q2 PAT up 75% to Rs 778 crore; Stage 3 improves to 1.90% (Oct 23, 2026)

Total income rose 3 per cent year-on-year to Rs 5,302 crore, with revenue from operations up 3.6 per cent to Rs 5,141 crore. Interest income rose 1 per cent to Rs 2,511 crore, while fees and other income increased 6 per cent to Rs 2,630 crore. Total card spending rose 3 per cent to Rs 1.11 lakh crore (yaani Rs 1.11 trillion), total receivables were Rs 58,376 crore, and the capital adequacy ratio stood at 26.5 per cent.

Finance costs grew 4 per cent to Rs 787 crore and total operating costs rose 7 per cent to Rs 2,649 crore, but the sharp fall in provisions outweighed those increases. The board approved the unaudited results on October 23, 2026.