This Credit Card Stock Rises 2% in 6 Months: Is the Worst Finally Over?
- September 11, 2026
- Posted by: Harsh Piplani
- Category: Best Stocks
CMP approximately Rs 651 (11 Sep 2026). 6-month return 2.32%, 1-year -24.11%. 52W range Rs 565.45 to Rs 965. Market cap approx Rs 63,400 Cr. Q1 FY27 PAT Rs 664 Cr, up 20%.
Quick Answer
SBI Card, the second-largest card issuer in India, gained only about 2.32% in six months to 10 September 2026 after losing 24.11% over one year, the worst 1-year return on a 101-stock screen. The fall came from high credit costs, higher RBI risk weights and slow receivables growth. Credit costs have now dropped to 6.5% and Q1 FY27 profit rose 20%, but growth still needs to return before this credit card stock can re-rate.
This credit card stock rises only about 2% in 6 months, and that small gain says more about survival than success. After a painful year in which the share lost roughly a quarter of its value, the price has finally stopped sliding, even if it has not yet started climbing in earnest.
The company is SBI Cards and Payment Services Ltd (NSE: SBICARD), the second-largest card issuer in India and a subsidiary of State Bank of India. The SBI Card share is ranked 92 out of 101 large-cap and mid-cap NSE stocks on 6-month returns as of 10 September 2026, and it sits at the very bottom of the same screen on 1-year and 5-year returns. Profits are now recovering, so the real question for investors is whether the worst is behind this credit card stock.
Click Here – Get Free Investment Predictions
How Has This Credit Card Stock Performed Across Time Frames?
The short answer is poorly, with a small recent bounce. This credit card stock returned approximately 2.32% over six months and 1.94% over one month, but it is down 24.11% over one year and 35.39% over five years as of 10 September 2026. On the 1-year and 5-year tables it ranks 101 out of 101, the weakest name on the entire screen.
| Period | Return (%) | Rank (out of 101) |
|---|---|---|
| 1 Month | 1.94% | 69 |
| 6 Months | 2.32% | 92 |
| 1 Year | -24.11% | 101 |
| 3 Years | -16.82% | 100 |
| 5 Years | -35.39% | 101 |
Returns are simple price changes and are not annualised. There has been no stock split or bonus issue at this credit card stock in the window, so the numbers reflect real price movement. The credit card stock traded near Rs 651 on the morning of 11 September 2026, about 2.3% below the previous close of Rs 666.30, which means the stock is still below its March 2020 IPO price of Rs 755.
The 52-week range tells the story of the past year. This credit card stock hit a high of Rs 965 and a low of Rs 565.45 over this period. At Rs 651, the credit card stock is about 15% above its low but still roughly 33% below its 52-week high, with a market capitalisation of approximately Rs 63,400 crore.
Why Did the Credit Card Stock Fall So Sharply Before Stabilising?
The decline was driven by rising bad loans, regulatory tightening and slow balance sheet growth. Each of these hit earnings at the same time, and the market punished this credit card stock accordingly. The recent flat patch reflects early signs that at least the first problem is easing.
Credit Costs Hit a Multi-Year High
Unsecured card loans turned sour across the industry in 2024 and 2025 as overstretched borrowers struggled to repay. At SBI Card, gross credit cost climbed to about 9.5% in Q1 FY26, which a foreign brokerage described as the highest in 16 quarters. Impairment charges ate into profit, and annual PAT fell about 20% from Rs 2,407 crore in FY24 to Rs 1,916 crore in FY25. For a credit card stock, credit cost is the single biggest swing factor.
RBI Risk Weights Raised the Cost of Growth
In November 2023, the RBI raised risk weights on unsecured consumer credit, lifting the figure for card-issuing NBFCs from 100% to 125%. That forced issuers to hold more capital against every rupee lent and slowed the pace of lending. For a credit card stock that had been valued on fast receivables growth, this was a structural setback rather than a one-quarter blip.
Slower Receivables and Squeezed Margins
Receivables grew just 3% year on year to Rs 58,269 crore in Q1 FY27, far below the growth rates the market once expected. The net interest margin eased to 10.8% from about 11.2% as portfolio yield dropped 102 basis points. A shrinking share of revolving customers, the most profitable borrowers, also limits how fast earnings can grow, which is why the credit card stock has struggled to re-rate.
Brokerage Downgrades and Tough Competition
A foreign brokerage cut the stock to underweight in August 2025 and slashed its target from Rs 1,040 to Rs 710, citing elevated credit costs as a structural challenge. At the same time, large private banks pushed premium cards aggressively, and this credit card stock kept drifting lower through late 2025 and early 2026.
What Has Changed for This Credit Card Stock in 2026?
Asset quality at SBI Card is clearly improving, and for this credit card stock that matters most, and that is why the slide has paused. In Q1 FY27, gross credit cost fell to 6.5%, down 301 basis points from a year earlier. Gross NPA dropped to 2.04% from 3.06%, net NPA to 0.83% from 1.42%, and the provision coverage ratio rose to 59.9%.
The operating picture behind the credit card stock also looks healthier. Total spends jumped 27% to Rs 1,18,475 crore, new accounts rose 17% to 10.23 lakh, and spend market share improved to about 19.5% from 18.1%. Cards in force reached about 2.26 crore. Corporate spends more than doubled, although management says this segment earns mainly interchange fees and carries no lending.
The share reacted with a gain of about 4% after the results on 27 July 2026, touching an intraday high of Rs 642.65. That rebound is the main reason this credit card stock is marginally positive over six months.
Check the Univest Screener for Live Fundamentals of High-Return Stocks
Credit Card Stock Financials: Is the Profit Recovery Real?
Yes, profit has risen for three straight quarters. Net profit climbed from Rs 445 crore in the September 2025 quarter to Rs 664 crore in the June 2026 quarter, up about 20% year on year. Revenue growth, however, remains slow.
| Quarter | Revenue from Operations (Rs Cr) | Net Profit (Rs Cr) | PAT Margin |
|---|---|---|---|
| Jun 2025 (Q1 FY26) | 4,877 | 556 | 11.4% |
| Sep 2025 (Q2 FY26) | 4,961 | 445 | 9.0% |
| Dec 2025 (Q3 FY26) | 5,127 | 557 | 10.9% |
| Mar 2026 (Q4 FY26) | 4,935 | 609 | 12.3% |
| Jun 2026 (Q1 FY27) | 5,041 | 664 | 13.2% |
For the full year FY26, total income rose to Rs 20,708 crore from Rs 18,637 crore, and net profit grew 13% to Rs 2,167 crore. That is still below the FY24 peak of Rs 2,407 crore, which shows this credit card stock has not yet recovered its old earning power.
In Q1 FY27, fee and commission income rose 9.7% to Rs 2,406 crore, while finance costs fell 8.4% to Rs 745 crore. The cost-to-income ratio improved to 58.7%, and management expects 56% to 58% for the full year. Return on average equity improved to 16.5% and return on average assets to 3.9%.
On valuation, this credit card stock trades at a trailing PE of about 27.9 against an industry PE of around 23.4, with a price-to-book ratio of about 4.0. The trailing ROE is approximately 13.8% and debt-to-equity is about 2.8, typical for a lender. Investors are still paying a premium for the brand and the State Bank of India parentage, even after the fall in this credit card stock.
Who Owns the SBI Card Share?
State Bank of India remains firmly in control, while foreign investors have been trimming their positions. Domestic institutions, mainly mutual funds, have edged up their stake as FIIs sold.
| Category | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Promoter | 68.59% | 68.58% | 68.92% | 68.86% |
| FII | 10.10% | 10.15% | 9.54% | 8.98% |
| DII | 17.76% | 17.84% | 18.12% | 18.14% |
| Public and Others | 3.55% | 3.42% | 3.42% | 4.03% |
FII holding fell from 10.15% in December 2025 to 8.98% in June 2026, a sign that global funds have not yet bought into the turnaround at this credit card stock. Mutual funds raised their holding to about 10.8% in June 2026, suggesting some domestic investors see value in this credit card stock at lower levels.
Key Risks for This Credit Card Stock
The recovery is real on paper, but it is early, and several risks could keep the SBI Card share price range-bound.
Credit cost relapse: Gross credit cost of 6.5% is better but still high in absolute terms. Any fresh stress among unsecured borrowers could push impairments back up and hurt the credit card stock again.
Weak loan growth: Receivables grew only 3% in Q1 FY27. Management expects growth mainly in the second half of the year, but it gave no numerical target. Without balance sheet growth, profit gains at this credit card stock will depend on lower provisions alone.
Margin pressure: Management expects the cost of funds to trend higher in line with market rates, while revolver rates show a slight downward bias. That combination could squeeze the net interest margin that supports the credit card stock.
Regulation and competition: Higher risk weights on unsecured credit remain in place, and banks and NBFCs keep competing hard for premium customers and personal loans that could replace card EMIs. A credit card stock is also sensitive to any new RBI rules on fees, interest or collections.
Valuation: A PE near 28, above the industry average, leaves little cushion if the recovery takes longer than hoped.
Download the Univest iOS App or Univest Android App to track the SBI Card share price live
SBI Card Share: Analyst View
Analysts remain cautious on this credit card stock. The consensus view is that asset quality has turned the corner, but growth and margins need to improve before a strong re-rating. Brokerage calls over the past year have mostly been hold, underweight or underperform.
SBI Card Share Price Target
A domestic brokerage has a hold rating with an SBI Card share price target of Rs 665, set in May 2026 at 22 times FY28 estimated earnings. It noted that credit cost was about 6.1% in Q4 FY26 excluding a management overlay, but warned that lower growth and a falling revolver mix could cap upside.
A foreign brokerage kept an underperform rating in October 2025 while raising its SBI Card share price target to Rs 820 from Rs 800. Another foreign brokerage cut its target to Rs 710 in August 2025. With the SBI Card share price near Rs 651, the latest domestic target implies only about 2% upside. These are estimates, not assurances.
For traders, the 52-week low of Rs 565.45 acts as the key support for this credit card stock, while the Rs 700 to Rs 710 zone is the first hurdle. A sustained move above that level would need confirmation from another quarter of falling credit costs and a pickup in receivables.
Conclusion
This credit card stock is the weakest performer on a 101-stock screen over one and five years, and its 2% gain in six months is more a pause than a rally. The long decline came from high credit costs, tougher RBI risk weights, slow receivables and steady FII selling.
The good news is that credit costs have fallen to 6.5%, NPAs have dropped, and net profit rose 20% in Q1 FY27. If receivables growth picks up in the second half and margins hold, the SBI Card share price could finally rebuild. Until then, this credit card stock suits patient investors who can accept slow progress, and fresh buyers may prefer to wait for proof that the turnaround is sustained.
Disclaimer: Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Which credit card stock rose 2% in 6 months?
Ans. SBI Cards and Payment Services (NSE: SBICARD) is the credit card stock that gained approximately 2.32% over six months as of 10 September 2026. It ranked 92 out of 101 large-cap and mid-cap NSE stocks on that period.
Why is SBI Card share price down over 1 year?
Ans. The SBI Card share price fell about 24% over one year because of high credit costs, higher RBI risk weights on unsecured loans, slow receivables growth and brokerage downgrades. It ranks last among 101 screened stocks on 1-year returns.
What were SBI Card Q1 FY27 results?
Ans. SBI Card reported Q1 FY27 net profit of Rs 664 crore, up about 20% year on year, on revenue from operations of Rs 5,041 crore. Gross credit cost fell to 6.5% and gross NPA improved to 2.04%.
Is the worst over for this credit card stock?
Ans. Asset quality has improved for several quarters, which suggests the worst of the credit cycle may be passing. However, receivables grew only 3% and margins are under pressure, so a full recovery is not yet confirmed.
What is the SBI Card share price target?
Ans. A domestic brokerage has a hold rating and an SBI Card share price target of Rs 665, set in May 2026. A foreign brokerage has an underperform rating with a target of Rs 820 from October 2025.
What is the 52-week high and low of SBI Card?
Ans. SBI Card has a 52-week high of Rs 965 and a 52-week low of Rs 565.45 on NSE. The credit card stock traded near Rs 651 on 11 September 2026.
Who owns the most shares of SBI Card?
Ans. State Bank of India is the promoter with about 68.86% as of June 2026. Domestic institutions hold about 18.14% and FIIs about 8.98%, down from 10.15% in December 2025.
Should I buy a credit card stock that has fallen this much?
Ans. A sharp fall does not by itself make a credit card stock good value. Investors should track credit costs, receivables growth and margins over the next few quarters, and consult a SEBI-registered advisor before investing.
