SBI Card's second-quarter profit rose by 75% to 778 crore rupees due to asset quality improvement

SBI Cards and Payment Services reported an increase in profit for the second quarter on Friday. This growth was attributed to improved asset quality and reduced provisions.

The firm, a subsidiary of the State Bank of India, stated that its profit after tax reached 778 crore rupees (US$81.9 million) for the quarter ending September 30. This figure is significantly higher than the 445 crore rupees recorded a year earlier.

In recent quarters, the company has consistently strengthened credit underwriting to manage asset quality issues and the rise in overdue credit card debt. Thanks to these measures, SBI Card's asset quality has improved, with gross non-performing assets standing at 1.90% at the end of September, which is 14 basis points lower than three months prior.

Concurrently, provisions for credit losses decreased by 36.6% year-on-year, amounting to 819 crore rupees.

Furthermore, during the second quarter of the 2027 fiscal year, lending growth momentum remained strong following an increase in the latter half of the previous year. Analysts expected card spends to remain stable in the reporting quarter, supported by rising corporate expenditures and steady retail spending.

SBI Card reported a 3% year-on-year increase in total card spends, reaching 1.11 trillion rupees. The company's total operating income grew by 3.6% year-on-year to 5,141 crore rupees. The number of issued credit cards, or cards in circulation, increased by 8% compared to the previous year, reaching 23.2 million.

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business-standard.comOctober 19, 16:48

Bajaj Finance profit grew by 28.7% in the second quarter to ₹6,367 crore due to lending growth

Bajaj Finance reported a 28.7% year-on-year rise in quarterly profit on Monday, driven by a steady increase in its loan portfolio volume.

The consolidated profit after tax for the non-banking financial company reached ₹6,367 crore (US$670.74 million) for the second quarter ending September 30, compared to ₹4,948 crore the previous year.

Overall lending growth among non-banking lenders was supported by high demand for consumer financing, consistent borrowing by small businesses, and growing demand for housing and gold loans.

Asset Dynamics and Growth Segments

Bajaj Finance's assets under management increased by 26% year-on-year for the September quarter, marking the fastest pace since March 2025. Meanwhile, gold loans doubled year-on-year, and rural consumer financing grew by 63%.

Loans to small and medium enterprises, for which the company has tightened underwriting after a period of higher default rates, increased by 3%.

Financial Metrics

The company's net interest income—the difference between interest earned on loans and interest paid on borrowings—rose by 24% to ₹13,335 crore. The gross non-performing asset ratio of the non-banking lender improved to 1.06% from 1.24% the previous year, but sequentially worsened compared to 0.96%.

The cost of credit, which reflects provisions set aside for potential loan losses, improved to 1.56% compared to 1.88% the previous year, but remained virtually unchanged sequentially.

business-standard.comOctober 19, 09:54

Union Bank's second-quarter profit rose by 31% to 5,781 crore rupees amid growth in net interest income

The consolidated net profit of Union Bank of India increased by 30.6% year-on-year, reaching 5,781 crore rupees in the quarter ending September 30, 2026. This figure was up from 4,425.95 crore rupees and was driven by an increase in net interest income and a sharp reduction in provisions.

Net interest income, calculated as interest earned minus interest paid, grew by 20.2% to 10,765.32 crore rupees, compared to 8,957.92 crore rupees. Meanwhile, interest income rose by 8.3% to 28,377.73 crore rupees, while interest expenses increased more slowly—by only 2.1%—to 17,612.41 crore rupees.

Sharp reduction in provisions by almost 50 percent

Operating profit before provisions and unexpected expenses rose by 19.1%, amounting to 8,150.96 crore rupees compared to 6,844.79 crore rupees. Provisions and unexpected expenses, excluding taxes, decreased by 49.6%, falling from 1,392.28 crore rupees to 702.19 crore rupees. However, provisions specifically set aside for non-performing assets increased by 15%, reaching 596.48 crore rupees.

Profit before tax increased by 36.6%, totaling 7,448.77 crore rupees. Tax expenses grew by 60.4% to 1,878.37 crore rupees. The bank's share of profit from affiliates increased by 45.6% to 210.60 crore rupees. Basic and diluted earnings per share rose to 7.57 rupees from 5.80 rupees.

Total income increased by 5.4% to 33,471.29 crore rupees, while other income decreased by 8.2% to 5,093.56 crore rupees. Total expenses, excluding provisions and unexpected expenses, rose by 1.6% to 25,320.33 crore rupees. Union Bank's operating margin improved to 24.35% from 21.55%, and net profit margin rose to 17.27% from 13.94%.

Credit growth outpaces deposit growth

Consolidated loans grew by 19.4% year-on-year to 1,136,280.44 crore rupees as of September 30, 2026, compared to 951,795.76 crore rupees. Deposits increased by 6.9%, reaching 1,322,309.68 crore rupees from 1,237,049.70 crore rupees. The consolidated capital adequacy ratio improved by 91 basis points, standing at 18.61% compared to 17.70%. The Tier 1 capital ratio increased by 171 basis points to 16.72%. Net capital grew by 14.6% to 134,105.53 crore rupees from 117,044.78 crore rupees.

Corporate banking results nearly doubled

Income from corporate and wholesale banking services increased by 11.3%, reaching 12,451.29 crore rupees. The result of this segment grew by 98.2%, amounting to 2,849.34 crore rupees. Retail banking income rose by 9.7% to 12,532.78 crore rupees, and the segment's result increased by 56.2% to 2,514.73 crore rupees. Income from the trading division decreased by 9.7% to 6,886.53 crore rupees, and the segment's result fell by 20.4% to 1,299.55 crore rupees.

For the first half of the fiscal year 27, consolidated net profit increased by 29%, reaching 11,422.52 crore rupees compared to 8,853.90 crore rupees.