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SBI Cards or SBI Life: Which stock should you buy post Q4 results?
SBI Cards and SBI Life stocks displayed an opposite trend post Q4 results. SBI Card stock plunged over 5 per cent in intra-day deals on Friday, while SBI Life Insurance shares rallied as much as 10 per cent. SBI Cards reported a 19 per cent decline in net profit at ₹534 crore for the quarter ended March 2025, as against ₹662 crore in the year ago period. Total income, however, grew by 8 per cent year-on-year (YoY) to 4,832 crore. Meanwhile, SBI Life posted a flat growth in net profit ₹813.50 crore; while its renewal premium increased by 12.9 per cent YoY to ₹14,680.30 crore. Post the stock reactions to the Q4 earnings, here's a trading guide for these two stocks. SBI Cards & Payments (SBI Cards) Current Price: ₹868 Upside Potential: 7.2% Downside Risk: 8.5% Support: ₹848; ₹828 Resistance: ₹882; 899 Prior to Friday's fall, SBI Cards has rallied 18 per cent from a low of ₹764 to a high of ₹931. At present levels, the stock is seen testing support around the 38.2 per cent retracement of its recent rally. Below which, support for the stock can be anticipated around 50 per cent and 61.8 per cent retracements levels at ₹848 and ₹828, respectively. The ₹848 support coincides with the super trend line support on the daily chart. Technically, break and sustained trade below the same could signal a likely weak bias going ahead. As such, the stock can potentially drop back to test its 100-Daily Moving Average (100-DMA) around ₹794 levels. CLICK HERE FOR THE CHART On the positive front, in case, the stock respected the super trend line support, it can attempt a pullback towards its recent highs around ₹930 levels. Near hurdles for the stock stand at ₹882 and ₹899 levels. SBI Life Insurance Current Price: ₹1,676 Upside Potential: 16.5% Downside Risk: 8.7% Support: ₹1,663; ₹1,620; ₹1,581 Resistance: ₹1,760; 1,812; ₹1,850 SBI Life zoomed to a high of ₹1,762, but at present has reversed most of its intra-day gains amid a fall in the broader market. The stock, however, continues to trade above the bullish pivot, which stands at 1,663. As long as the stock holds above the same, the stock can potentially continue to trade with a favourable bias. On the upside, the stock can surge to ₹1,952 levels, with interim resistance likely around ₹1,760, ₹1,812 and ₹1,850 levels. On the flip side, in case, the stock violated the ₹1,663 support, it can fall back to test support around its 200-DMA at ₹1,581, or deeper down ₹1,555 levels. Intermediate support for the stock stands at ₹1,620 levels.
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That makes credit cost management the most critical part of the business. In FY25, this is where SBI Cards faced its biggest challenge. The company's gross credit cost jumped to 9.0%, up from 7.1% in FY24. That means for every Rs 100 in loans, it had to set aside Rs 9 to cover potential losses. These are levels last seen during pandemic disruptions. In the March 2025 quarter alone, SBI Cards wrote off nearly Rs 1,300 crore worth of loans, with gross NPAs reaching 3.08%, a slight improvement from the previous quarter, but still elevated. This pressure is not unique to SBI Cards. Most credit card issuers in India have seen rising delinquencies in the unsecured lending space. The slowdown in job creation, rising EMI burdens, and post-Covid credit fatigue are all playing a part. But in SBI Cards' case, the surge in write-offs was sharper, especially among certain borrower segments sourced aggressively in earlier quarters. To its credit, management acted early. 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For SBI Cards to trade back at 30x+ earnings and deliver 20-25% upside from current levels, a few things need to happen: ● Credit costs must normalise to 6-7% levels ● Fee income must rebound, helped by higher activity and new partnerships ● Margin profile should stabilise, with controlled cost-to-income ratios ● The market must get comfortable with moderate but profitable growth, rather than breakneck expansion On the flip side, downside risks include: ● Prolonged stress in unsecured lending ● Regulatory changes that cap interest or fee income ● Rising competition in digital-first credit cards, especially from fintechs and NBFCs Final take SBI Cards is no longer in its hyper-growth phase, but it is not in decline either. It is entering a more mature, more strategic phase of growth, one that prioritises quality over scale. For long-term investors looking at India's consumption story, SBI Cards offers a direct play on credit, digitisation, and rising middle-class aspirations. But it requires patience and a close watch on how the company manages risk in a market that is evolving faster than ever. Note: This article relies on data from annual and industry reports. We have used our assumptions for forecasting. Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter and an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
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