SBI Card share price grows 5.5% amid improved asset quality in Q1 – check details here

SBI Cards and Payment Services (SBI Card) shares surged 5.5 per cent to Rs 1009.9 per share on the BSE intraday trade on Monday amid improvement in asset quality in the June-ended quarter.

The financial services company’s gross non-performing assets (GNPA) stood at 3.91 per cent in Q1 of FY22 as against 4.99 per cent in the fourth quarter of FY21, while Net NPA was down to 0.88 per cent from a 1.15 per cent quarter-on-quarter basis.

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On a year-on-year basis, GNPA and NNPA stood at 1.35 per cent and 0.43 per cent, respectively, the company said in its exchange filing.

The Reserve Bank of India’s Resolution Plan book was down from 8 per cent to 6 per cent sequentially. The management overlay provision was at Rs 258 crore as of the June-ended quarter of FY22.

The net profit of the SBI Card jumped 74 per cent to Rs 304.61 crore as against Rs 175.42 crore QoQ, while its revenue grew by 2 per cent on a sequential basis and 10 per cent YoY to Rs 2362 crore. 

The company’s net interest margin improved 159 basis points (bps) sequentially at 14.8 per cent from 13.2 per cent the previous quarter.

The management said income lines were steady QoQ, NIM improvement sequentially was driven by lower interest expense and higher interest yield. The lower operating expenses were driven by higher business volumes. ROAA and ROAE increase sequentially was driven by higher profits, it further said.

The stock at around 12:40 pm was trading near the day’s high level at 1007.6 per share, up 5.3 per cent on the BSE, as compared to 0.05 per cent growth in the S&P BSE Sensex. The stock is up over 34.5 per cent in the last year and it had touched its all-time high at Rs 1149 on February 02, 2021.

SBI Card is a non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, and banking partnerships cards along with corporate cards covering all major cardholders’ segments in terms of income profile and lifestyle.