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SBI Card Q2 Profit Rises 75% to ₹778 Crore as Asset Quality Improves
Sentiment: PositiveHigh Priority
What Happened?
SBI Cards and Payment Services reported a 75% increase in second-quarter profit to ₹778 crore, driven by improved asset quality and reduced provisions. The company's gross non-performing assets fell to 1.90%.
Key points
- Profit after tax rose to ₹778 crore ($81.9 million) for the quarter ending September 30, up from ₹445 crore a year earlier.
- Gross non-performing assets improved to 1.90%, down 14 basis points from the previous quarter.
- Loan loss provisions decreased by 36.6% year-on-year to ₹819 crore.
- Total card spending increased by 3% year-on-year to ₹1.11 trillion.
- Total revenue from operations rose by 3.6% year-on-year to ₹5,141 crore.
- The number of credit cards issued increased by 8% to 23.2 million.
Key insights
- Improved asset quality may lead to lower borrowing costs for SBI Card in the future.
- The increase in card spending suggests a recovery in consumer confidence and spending behavior.
- SBI Card's tightening of credit underwriting could mitigate future delinquencies.
Why it matters
The profit increase indicates SBI Card's effective management of asset quality and credit risk, which could enhance investor confidence.
Entities
SBI Cards and Payment Services· CompanyState Bank of India· Organization₹778 crore· Currency₹445 crore· Currency1.90%· Percentage₹819 crore· Currency₹1.11 trillion· Currency₹5,141 crore· Currency23.2 million· Number
Source
Business Standard
