sbicard

Nomura observes that several major concerns are likely to ease in the near term, particularly regarding asset quality, driven by the following factors:

1) The share of metro regions in credit card debt has been gradually increasing since FY23, while the leverage and limit levels of non-metro customers have been declining.

2) SBI Cards has seen a growing contribution from the top eight metro cities in its new customer acquisitions.

3) SBI Cards has seen a rise in net card addition in November 2024 by 231,000, which is the highest since December 2023.

These developments suggest that asset quality issues should stabilise in the next few quarters, positively impacting the company's return profile in FY26, according to Nomura.