Analyst Concall
SBI Cards mgmt sees credit cost falling 20-30 bps Jul-Sept
This story was originally published at 20:05 IST on 25 July 2025
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NEW DELHI – SBI Cards and Payments Services Ltd., whose credit costs have been weighing on quarterly net profit for a year now, expects the cost burden to fall 20-30 basis points on quarter in Jul-Sept, the company's management said, adding it was difficult to give guidance on credit cost for the entire financial year.
SBI Cards' net profit fell 6.5% on year to INR 5.56 billion in the June quarter as the company's credit costs jumped 23% on year and 9% on quarter. The repo rate cut of 100 bps by the Reserve Bank of India had a negligible impact on SBI Cards' credit costs in Apr-Jun, as it happened in the last month of the quarter, the management said in a call with analysts after the company announced its financial results for the reported quarter. "The full impact of the rate cut should be visible in Jul-Sept results," the management said.
In absolute terms, SBI Cards' credit cost is likely to be in the range of INR 1.25 billion to INR 1.35 billion in the upcoming quarter, according to the company's management. "We expect credit cost will be somewhere between what we saw in the last quarter (Jan-Mar) and what we have seen in the current one (Apr-Jun)," the management said.
As a result of the fall in credit cost, the company expects its net interest margin to improve in the September quarter, the management said, without quantifying the improvement. In the June quarter, SBI Cards reported a net interest margin of 11.2%, up 3 bps on quarter.
SBI Cards declared its quarterly results after market hours. On Friday, its shares closed 0.3% higher at INR 888.50 on the National Stock Exchange. End
Reported by Krity Ambey and Pratiksha
Edited by Subhojit Sarkar
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