SBI Cards’ net profit dips 5% y-o-y to Rs 593 crore in Q1FY24; stock plunges ~2%

31 Jul 2023 , 10:52 AM

SBI Cards and Payment Services reported a 5% y-o-y drop in net profit to Rs 593 crore in the current financial year’s June quarter compared to a net profit of Rs 627 crore in the previous corresponding quarter.

This was due to the company’s asset quality degradation and net interest margin compression.

Revenue climbed by 24% year-on-year to Rs 4,046 crore, from Rs 3,263 crore in Q1FY23. Interest income climbed by 30% in Q1FY24 to Rs 1,804 crore, up from Rs 1,387 crore in Q1FY23.

Fees and commission income climbed by 23% to Rs 1,898 crore in Q1FY24, compared to Rs 1,538 crore in Q1FY23.

The company’s asset quality deteriorated in the April-June quarter, with gross non-performing assets (NPA) rising to 2.41% of gross advances as of June 30, 2023, up from 2.24% as of June 30, 2022. Net non-performing assets stood at 0.89% as of June 30, 2023, up from 0.79% in the previous comparable period.

The company’s net interest margins were 11.5%, down 176 basis points.

At around 11.01 AM, SBI Cards was trading 0.61% lower at Rs 852, against the previous close of Rs 857.20 on NSE. The counter slipped to an intraday low of Rs 825.20 in today’s trade.

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