SBI Cards' Q2 Profit Up 15%, Shares Fall Over 7% on Provisions

30 Oct 2023 , 03:10 PM

SBI Cards and Payments Services witnessed a more than 7% drop in its share price during early trading on Monday following the release of its Q2 FY24 financial results. SBI Card shares fell by 7.45% to reach Rs 732.05 on the BSE, slipping below its IPO price of Rs 755 per share.

The company reported a 15% increase in net profit for Q2 FY24, reaching Rs 603 crore compared to Rs 526 crore in the same quarter the previous year. Revenues showed a significant 22% growth, rising to Rs 4,221 crore from Rs 3,453 crore year-on-year.

However, the increase in provisions had a negative impact on earnings, and the margin contracted by 12 basis points to 11.3% due to a decrease in yield, despite the stability in the mix of EMI and revolver rates.

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