SBI Cards and Payment Services Ltd. – Investor Presentation Summary

Key Operational Highlights

  • New Accounts sourced in Q1 & Q2 FY27 were ~1 Mn+, growing 18% YoY.
  • Retail Spends were ₹95,299 Cr in Q2 FY27, up 1% QoQ and 6% YoY, described as broad-based across categories.
  • Corporate Spends were ₹15,390 Cr in Q2 FY27, down 37% QoQ but up 12% YoY.
  • Cards-in-Force (CIF) stood at 19.0 Mn as of September 30, 2026, with a distribution of 54% SBI and 46% Open Market.
  • Income from non-Earning Assets (IBNEA) was ~55% of Receivables.
  • Online Spend percentage grew, and UPI spends on Rupay Cards saw over 17% growth Q2 FY27 vs Q1 FY27.

Key drivers of operational performance:

Growth was driven by new account sourcing and broad-based retail spend growth, including a significant increase in UPI transactions.

Financial Highlights

  • Revenue from operations: ₹5,141 Cr (Q2 FY27)
  • Total Income: ₹5,302 Cr (Q2 FY27)
  • EBITDA: Not explicitly stated; Earning Before Credit Cost was ₹1,865 Cr.
  • PAT: ₹778 Cr (Q2 FY27)
  • EPS: Not explicitly stated in the presentation.
  • Margins: NIM was 10.8%, Cost to Income was 58.7%.
  • YoY/QoQ comparison: PAT grew 17% QoQ and 75% YoY. Revenue from operations grew 2% QoQ and 4% YoY.
  • Drivers of financial performance: Higher PAT was primarily driven by a significant 37% YoY reduction in impairment on financial instruments (credit cost) to ₹819 Cr.
  • Comparison to market estimates: Not provided in the presentation.

Key Risks:

Not explicitly disclosed in the presentation.

Asset Quality

  • Gross NPA (GNPA): 1.90% (Q2 FY27), down 14 bps QoQ and 95 bps YoY.
  • Net NPA (NNPA): 0.77% (Q2 FY27), down 6 bps QoQ and 52 bps YoY.
  • Provision Coverage Ratio (PCR): 59.8% (Q2 FY27).
  • Expected Credit Loss (ECL): 3.0% (Q2 FY27).
  • Gross Credit Cost: 5.6% (Q2 FY27), down 98 bps QoQ and 342 bps YoY.
  • Net Credit Cost: 4.5% (Q2 FY27), down 98 bps QoQ and 332 bps YoY.

Borrowings & Capital Adequacy

  • Borrowings Mix: Comprised 64% WCDL, 13% CP, and 23% NCD/TL as of Q2 FY27.
  • Capital Adequacy Ratio (CAR): Was at a comfortable level of 26%+.
  • Cost of Funds (COF): Daily weighted average COF was up 18 bps QoQ to 6.6%.
  • Credit Ratings: Short Term: A1+ by CRISIL & ICRA; Long Term: AAA/Stable by CRISIL & ICRA.

Balance Sheet Snapshot (as of September 30, 2026)

  • Loans (Net of Provisions): ₹56,532 Cr
  • Cash & Bank Balances: ₹3,759 Cr
  • Total Assets: ₹71,102 Cr
  • Total Equity: ₹17,172 Cr
  • Borrowings: ₹47,850 Cr
  • Net Debt/Equity: Not explicitly calculated, but leverage is evident.

Capex & Cash Flow Health

  • Capital Expenditure: Not explicitly stated.
  • Free Cash Flow: Not explicitly stated.
  • Operating Cash Flow: Not explicitly stated.

Strategic & R&D Initiatives

  • New Product Launch: Partnered with Google Pay to launch 'Google Pay Flex SBI Card', targeting frequent spenders.
  • Digital Journey: Launched a digital application journey for Secured Cards on SBI's YONO platform.
  • Partnerships: Continued a strategic partnership with Apple for customer discounts and partnered with SIIMA for regional brand outreach.

Management Commentary & Growth Outlook

  • Strategic Outlook: Not provided as a direct quote, but the presentation highlights a focus on partnerships, digital innovation, and regional connectivity.
  • FY Guidance: Not provided.

ESG & CSR Update

  • The company reported on its FY25-26 ESG performance, celebrated festivals to promote inclusivity, organized health camps for employees, and conducted a CSR engagement activity with children suffering from cancer in Lucknow.

Shareholders Summary

  • Top Shareholder: State Bank Of India held 68.58% of shares as of September 30, 2026.
  • Other Major Holders: Life Insurance Corporation Of India (P & Gs Fund) at 4.11%, and various ICICI Prudential funds.

Recent Developments

Key developments included the launch of the Google Pay Flex SBI Card, a partnership with SIIMA, the launch of a digital secured card journey on YONO, and the continuation of the SBI Card Apple Offer campaign.