Business Performance Metrics

  • Cards in Force: Grew to approximately 2.32 crore (2 crore 32 lakhs) with 8% year-over-year growth
  • New Accounts: Added more than 1 million new accounts during Q2 FY27, representing 18% YoY increase
  • Net Card Addition: 8.6 lakh new cards added in FY27 till August 2026, reported as highest in the industry
  • Sourcing Distribution: 49% from Banca channels, 51% from open market
  • Market Position: India's second largest credit card issuer with 18.5% Cards in Force market share and 19% spends market share as per RBI August 2026 data

Financial Performance

  • Revenue from Operations: ₹5,141 crores, registering 4% YoY growth
  • PAT: ₹778 crores with 75% YoY increase
  • Operating Cost: ₹2,649 crores with 7% YoY increase
  • Cost-to-Income Ratio: 58.7%, up 193 basis points YoY
  • Receivables: ₹58,376 crores for the quarter
  • Interest-Earning Assets: Stable at 55% with revolver rate at 22%
  • Portfolio Yield: 16.1%
  • Cost of Funds: Daily weighted average of 6.8%, up 18 basis points QoQ
  • Net Interest Margin: 10.8%
  • ROA: 4.4%, 180 bps higher YoY
  • ROE: 18.4%, 631 basis points higher YoY
  • Capital Adequacy Ratio: Comfortable level of more than 26%

Spend Metrics

  • Total Spends: ₹1,10,689 crores with approximately 3% YoY growth
  • Retail Spends: ₹95,299 crores (highest ever) with 6% YoY growth
  • Corporate Spends: ₹15,390 crores during the quarter
  • Online Spends Contribution: 62.8% of total retail spend in H1 FY27
  • UPI Spends: Grew 17% quarter-over-quarter, primarily in department stores, groceries, utilities, fuel, electronics and apparel categories
  • UPI Transaction Value: ₹21,300 crores of spends occurred through UPI
  • Spend per Card: Approximately ₹167,000
  • 30-Day Spend Active Rate: 53%

Asset Quality

  • Gross Credit Cost: Improved by 98 basis points QoQ and 342 basis points YoY to 5.6%
  • Gross NPA: Reduced by 14 basis points QoQ and 95 basis points YoY to 1.9%
  • Net NPA: 0.77%
  • Slippage Ratio: Showing continued reduction
  • Additional Provision: ₹30 crores made during quarter for macroeconomic uncertainty related to prolonged West Asia conflict, bringing total additional provision to ₹100 crores as of September 30, 2026
  • Stage 2 Assets: Marginal increase noted but considered quarterly seasonality

Strategic Initiatives and Product Launches

  • Launched Google Pay Flex SBI Card to augment co-branded credit card portfolio
  • Launched Advantage SBI Card on SBI YONO for secured credit card backed by fixed deposit
  • Continued customer-centric offers with brands including Amazon, Flipkart, Myntra, Air India, Bosch, LG, Sony, HP
  • Maintained strategic partnership with Apple for instant discounts across products including iPhone 18 Pro
  • Strengthened AI capabilities across customer engagement, sales and employee productivity
  • Received CII National Artificial Intelligence (AI) award for hyperpersonalization program

Management Guidance and Outlook

  • New Accounts: Maintain quarterly run rate of more than 1 million new accounts during FY27
  • Cost-to-Income Ratio: Expected to remain around 57% to 59% for FY27
  • Receivables Growth: Expected to pick up in Q3 FY27 with festive season underway
  • NIM: Expected to be range-bound despite increasing cost of funds
  • Credit Costs: Expected to stay around 6% for FY27, subject to geopolitical impact
  • Retail Spend Growth: Expected mid-teens to high teens growth for full year (14-16% range)
  • Borrowing Strategy: Focus on optimizing borrowing mix across working capital loans, term loans, and NCDs to minimize impact of rising rates
  • Yield Management: Implementing yield hikes on EMI portfolio (increased from 16% to 17% for point-of-sale EMI)

Market and Macroeconomic Context

  • India's real GDP growth projected at 7.1% for FY27 by RBI
  • UPI transaction volumes grew 27% YoY to approximately 145 billion transactions in H1 FY27
  • Credit card industry cards in force increased by 10.5% YoY to over 124 million as of August 2026
  • Cumulative credit card spends for first 5 months of FY27 stood at more than ₹10 trillion
  • Nearly half of first-time credit card users aged 30 or below
  • Approximately 46% of new users from semi-urban, Tier 2, Tier 3 and rural markets

RuPay Card Penetration

  • RuPay linked credit cards constitute more than one-third of the company's card base
  • Tier 2 plus markets show highest UPI active Cards in Force and UPI spend

Account Classification Update

  • Refinement in account classification resulted in SBI's share increasing to 46% in Cards in Force (from 36% in previous quarter)
  • 10% of portfolio reclassified based on granular analysis of account features and parameters

Forward Strategy

The company's forward agenda rests on five levers: expanding footprint into Tier 2 and Tier 3 markets focusing on Banca penetration; deepening premiumization and spend per card; optimization of credit costs; enhancing digital and data analytics capabilities; and sustained cost discipline.