SBI CARDS Q2 CONCALL : FY27 RETAIL SPENDING GROWTH TARGETED AT MID-TO-HIGH TEENS, RECEIVABLES RECOVERY EXPECTED FROM Q3 & CREDIT COST GUIDANCE AT 6%

• MANAGEMENT EXPECTS FY27 RETAIL SPENDING GROWTH IN MID-TO-HIGH TEENS • Q3 FESTIVE SEASON EXPECTED TO DRIVE STRONGER CARD SPENDING & EMI CONVERSIONS • RECEIVABLES GROWTH EXPECTED TO RECOVER FROM Q3 FY27, WITH IMPROVEMENT CONTINUING IN H2 • FY27 GROSS CREDIT COST GUIDANCE MAINTAINED AROUND 6%, WITH 5.5–6% CONSIDERED A COMFORTABLE RANGE • MANAGEMENT SEES LIMITED SCOPE FOR FURTHER SIGNIFICANT CREDIT COST REDUCTION • NET INTEREST MARGIN TARGETED TO REMAIN STABLE AROUND CURRENT 10.8% • BORROWING COSTS EXPECTED TO INCREASE OVER COMING QUARTERS VS 6.8% IN Q2 • EMI LENDING RATES INCREASED TO APPROXIMATELY 17% TO PARTIALLY OFFSET HIGHER FUNDING COSTS • MANAGEMENT TARGETING HIGHER EMI PORTFOLIO SHARE FROM CURRENT 33% TO SUPPORT INTEREST INCOME & YIELDS • FY27 COST-TO-INCOME RATIO GUIDANCE MAINTAINED AT 57–59% VS 58.7% IN Q2 • Q3 OPERATING EXPENSES EXPECTED TO INCREASE DUE TO FESTIVE PROMOTIONS & CUSTOMER ACQUISITION • MANAGEMENT EXPECTS MORE THAN 10 LAKH NEW CREDIT CARD ACCOUNTS PER QUARTER • Q3 SPENDING PER CARD EXPECTED ABOVE ₹1.70 LAKH VS APPROXIMATELY ₹1.67 LAKH CURRENTLY • CORPORATE SPENDING CONTRIBUTION INTENDED TO REMAIN BELOW 20%, WITH FOCUS ON PROFITABILITY • RISING BORROWING COSTS, LIMITED CREDIT COST IMPROVEMENT, HIGHER OPERATING EXPENSES & RECEIVABLES GROWTH EXECUTION REMAIN KEY RISKS

SBI CARDS & PAY SER LTD

← Back to feed