SBI Cards Q2 Results: SBI Cards and Payments Services Ltd., a subsidiary of the State Bank of India, reported a significant decline in net profit for the quarter ending September 30. The company’s net profit dropped by 33% to Rs 404 crore, compared to Rs 603 crore in the same period last year.
Despite the profit decrease, SBI Cards saw total income rise by 8%, reaching Rs 4,556 crore, up from Rs 4,221 crore in the previous year. Interest income also grew by 20% to Rs 2,290 crore, compared to Rs 1,902 crore in the same quarter of the last fiscal year. However, the net interest margin decreased slightly to 10.6%, down from 10.9% in the previous quarter.
The company’s gross non-performing assets (NPAs) ratio increased by 22 basis points to 3.27%, up from 3.06% in the previous quarter. Additionally, the net NPA ratio rose by 8 basis points to 1.19%, compared to 1.11% in the April-June period.
As of September 30, the State Bank of India maintained a controlling stake of 68.61% in SBI Cards. Mutual funds held a 9.89% stake, while foreign portfolio investors owned a cumulative 9.18%.
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Following the announcement of its second-quarter results, SBI Cards’ share price surged. The stock peaked at Rs 702 on the NSE, reflecting a 5.2% increase, before closing at Rs 692, up 3.66%. However, the stock has declined 8.9% year-to-date and 12.45% over the past year.
