Shares of SBI Cards and Payment Services Ltd slumped over 5.5% to ₹875 in Friday’s early trade after the company reported a 19% YoY decline in net profit for the quarter ended March 2025, weighed down by higher impairments and provisions.
The credit card giant posted a Q4FY25 PAT of ₹534 crore, down from ₹660 crore in the same period last year. However, sequentially, profit rose 39%.
The company’s impairment on financial instruments surged 32% YoY to ₹1,245 crore, and provisions rose to ₹1,906 crore from ₹1,767 crore. Gross credit cost stood at 9%, up 143 basis points YoY, while GNPA and NNPA increased to 3.08% and 1.46%, respectively.
Despite the provisioning pressure, revenue from operations grew 8% YoY to ₹4,674 crore, with retail spending rising 15% YoY to ₹79,709 crore. The company added 11.09 lakh new accounts during the quarter.
Morgan Stanley maintained an Equal-weight rating and raised the target price to ₹775, highlighting that while Q4 PAT beat their estimates by 15%, uncertainty around timing and levels of normalisation in credit costs remains. The firm, however, noted that QoQ declines in credit costs and bad loan formation signal potential early stability.
SBI Cards’ Net Interest Margin (NIM) expanded 29 bps YoY to 11.2%, supported by rising yields and easing funding costs.
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