SBI Cards and Payment Services Limited has released its transcript for the Q2 FY27 earnings call held on October 23, 2026. The document highlights a resilient Indian economic outlook and a strong growth trajectory for the credit card industry. Key performance indicators, including card acquisition, spends, and financial metrics, are discussed, alongside strategic priorities for sustainable growth and customer acquisition.
SBI Cards and Payment Services Limited: Q2 FY27 Earnings Call Transcript Highlights
The transcript of the SBI Cards and Payment Services Limited Q2 FY27 Earnings Conference Call, held on October 23, 2026, provides a detailed overview of the company’s performance and outlook. The call commenced with a welcome address and an introduction to the management team, including Ms. Salila Pande (MD & CEO), Mr. Girish Budhiraja (Chief Sales & Marketing Officer), Ms. Rashmi Mohanty (Chief Financial Officer), and Mr. Krishna Kant Bishnoi (Chief Risk Officer).
Macroeconomic Environment and Industry Growth
Ms. Salila Pande opened the discussion by emphasizing India’s resilient growth outlook, with real GDP projected at 7.1% for FY27, reflecting strong domestic economic activity. The digital payments ecosystem continues to expand rapidly, with UPI transaction volumes growing 27% Y-o-Y to approximately 145 billion in H1 FY27. The credit card industry is also showing robust growth, with cards in force increasing by 10.5% Y-o-Y to over 124 million as of August 2026. Cumulative credit card spends for the first 5 months of FY27 exceeded INR10 trillion. The customer base is evolving, becoming younger and more diverse, with a significant portion of new users from semi-urban and rural markets, indicating a growing democratization of credit.
Business Performance and Key Metrics
SBI Card’s strategy is focused on building a robust credit card business through differentiated products, strategic partnerships, and digital capabilities. During Q2 FY27, the company launched the Google Pay Flex SBI Card and the Advantage SBI Card on SBI YONO. Cards in Force grew by 8% Y-o-Y to approximately 2.32 crore. The company added over 1 million new accounts during the quarter, an 18% increase Y-o-Y, with net card additions for FY27 till August being the highest in the industry. SBI Card maintains its position as India’s second-largest credit card issuer with a market share of 18.5%.
Total spends for the quarter reached INR1,10,689 crore, a 3% year-over-year growth, with retail spends hitting an all-time high of INR95,299 crore, up 6% Y-o-Y. Online spends accounted for 62.8% of total retail spends in H1 FY27. Corporate spends were at INR15,390 crore. UPI spends on credit cards grew 17% quarter-over-quarter. Revenue from operations was INR5,141 crore, a 4% Y-o-Y growth, while PAT increased by 75% Y-o-Y to INR778 crore, driven by improved credit costs.
Asset Quality and Financial Health
Asset quality continues to improve, with NPAs reaching their lowest post-COVID-19 levels. Gross credit cost improved by 98 basis points quarter-over-quarter to 5.6%, and Gross NPA reduced by 14 basis points quarter-over-quarter to 1.9%. Net NPA stands at 0.77%. The company also reported an additional provision of INR30 crore due to macroeconomic uncertainty, bringing the total management overlay to INR100 crore as of September 30, 2026. The capital adequacy ratio remained strong at over 26%, with ROA at 4.4% and ROE at 18.4%.
Future Outlook and Strategy
Looking ahead, SBI Card aims to strengthen customer relationships, expand its footprint into Tier 2 and Tier 3 markets, and focus on premiumization and optimized credit costs. The company expects continued growth in retail spends, driven by festive seasons and increased card usage. While cost of funds is expected to increase, SBI Card plans to optimize borrowing costs and adjust portfolio yields to maintain stable Net Interest Margins (NIM). The company is comfortable with its current credit cost range of 5.5% to 6% and does not expect significant moderation beyond this.
Source: BSE
