Earnings Review
SBI Cards net profit falls 19% on year as credit cost jumps
This story was originally published at 20:48 IST on 24 April 2025
Register to read our real-time news.Informist, Thursday, Apr. 24, 2025
Please click here to read all liners published on this story
--SBI Cards: Cards-in-force at 20.8 mln as on Mar 31, up 10% on year
--SBI Cards Jan-Mar receivables at INR 558.40 bln, up 10% on year
--SBI Cards Jan-Mar retail spends INR 797.09 bln, up 15% on year
--SBI Cards Jan-Mar credit costs 9%, up 143 bps on year
--SBI Cards Jan-Mar NIM 11.2%, up 29 bps on year
--SBI Cards FY25 revenue INR 180.72 bln vs INR 169.68 bln year ago
--SBI Cards FY25 net profit INR 19.16 bln vs INR 24.08 bln year ago
--SBI Cards net NPA ratio 1.46% as on Mar 31
--SBI Cards gross NPA ratio 3.08% as on Mar 31
--SBI Cards Jan-Mar revenue INR 46.74 bln vs INR 43.48 bln year ago
--SBI Cards Jan-Mar net profit INR 5.34 bln vs INR 6.62 bln year ago
--Analysts saw SBI Cards Jan-Mar net profit INR 4.78 bln
--SBI Cards Jan-Mar net profit INR 5.34 bln
By Pratiksha
NEW DELHI – SBI Cards and Payments Services Ltd.'s net profit for the March quarter fell on a year-on-year basis for the third consecutive quarter due to an on-year rise in credit costs and deterioration in asset quality. The net profit was, however, higher than consensus estimates.
The credit card company posted a net profit of INR 5.34 billion for Jan-Mar, down 19.4% on year, but up 39.4% from a quarter ago. An average of seven analysts' estimates had pegged the net profit at INR 4.78 billion.
SBI Cards' credit cost rose 143 basis points on year and fell 42 bps on quarter to 9.0%. As on Mar. 31, the company's gross non-performing asset ratio was 3.08%, up 31 bps on year but down 17 bps on quarter. The net NPA ratio was 1.46% as on Mar. 31, up 47 bps from a year ago and 27 bps from a quarter ago.
Impairment of financial instruments rose 31.8% on year to INR 12.45 billion during the quarter, which also weighed on the bottom line and drove up SBI Cards' total expenditure for the reporting quarter to INR 41.13 billion, up 14.7% on year. Meanwhile, the company's top line grew only marginally – revenue from operations rose by just 7.5% on year to INR 46.74 billion in Jan-Mar. Total income rose 8.0% on year to INR 48.32 billion, out of which the other income segment jumped 24.4% on year to INR 1.58 billion.
The credit card company's net interest margin rose to 11.2% in Jan-Mar, up 29 bps on year, and 54 bps on quarter. Cards in force rose to 20.8 million as of Mar. 31, up 10% from a year ago, and accounting for 18.9% of the total credit cards issued in the country.
The company's receivables in Jan-Mar rose 10% on year and 2.0% on quarter to INR 558.40 billion. New accounts opened rose 8% on year to 1.11 million in Jan-Mar.
Total spends on cards in the quarter rose 11% on year to INR 883.65 billion. Retail spends, which make up the bulk of the total spends, rose 15% on year to INR 797.09 billion in the March quarter, but corporate spends fell by 17% on year to INR 86.56 billion. Nearly 59% of the retail spends were online in FY25.
In FY25, the credit card company reported a net profit of INR 19.16 billion, down 20.4% from a year ago. The total revenue from operations grew 6.5% on year to INR 180.72 billion.
On Thursday, shares of SBI Cards and Payments ended 1.2% higher at INR 926.55 on the National Stock Exchange. The company announced its earnings after market hours.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
