SBI Card Q2FY25 Results: Net profit slips 33% to Rs 404 crore

SBI Card Q2 Results: SBI Card, the credit card arm of the SBI Group, released its Q2 financial results on Tuesday (October 29, 2024). For the July-September quarter, the company's standalone net profit slipped 33 per cent year-on-year to Rs 404 crore as against Rs 603 crore reported during the same period last year. Zee Business analysts estimated PAT to slip by 16 per cent during the review quarter to Rs 501.5 crore amid industry-wide woes pertaining to credit cards.

The pure-play credit card company during the period under review posted total revenue from operation at Rs 4,421 crore. The same in the corresponding period last year was at Rs 4,087.35 crore. In the June quarter of the ongoing fiscal year, the company's revenue came in at Rs 4,358.64 crore.

In its investor presentation, the company said during the July-Septemeber quarter, the company witnessed continued growth in retail spends as well as receivables.

The cost to income at the company for the quarter stood at 53.4 per cent, a 375 basis point year-on-year (YoY) decline. It however rose 449 bps quarter-on-quarter (QoQ).

Asset quality at the company worsened during the review quarter with gross non-performing assets (GNPA) ratio increasing 84 bps YoY to 3.27 per cent during the review quarter. It rose 22 bps sequentially.

Similarly, net non-performing assers ratio (NNPA) also increased 31 bps YoY to 1.19 per cent.

Furthermore, for the review quarter, the CAR or capital adequacy ratio stood at 22.1 per cent, dropping from 23.3 per cent reported in the same quarter last year. For non-deposit-taking systemically important (NBFC-ND-SI) companies, the apex banker RBI has mandated a minimum CAR of 15 per cent.

SBI Card share price performance

Despite the decline in profitability during the review period, the company's shares traded strong by over 2 per cent at Rs 685.2 per share.