Geopolitical uncertainty impacting credit costs
Management highlighted that geopolitical tensions could worsen macroeconomic conditions and affect asset quality, potentially slowing credit cost moderation.
SBICARDSANDPAYMENT / bear-case history
Track the concerns that keep returning.
SBI Cards and · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Declining revolver rates pressuring NIM
Revolver rates are expected to have a slight downward bias in FY27, which could compress net interest margins if not offset by EMI growth or other measures.
Slow receivables growth may persist
Receivables grew only 2% YoY, and management did not provide a clear timeline for acceleration, raising concerns about near-term revenue momentum.
Cost-to-income ratio may remain elevated
Despite guidance of 55-58%, the adjusted cost-to-income ratio (excluding one-offs) was ~60% in Q4, and corporate spend normalization may not fully offset structural cost pressures.