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<ul><li>This is the first earnings report released by <keyword id="116253" type="ORGANIZATION" weightage="20" keywordseo="SBI-cards">SBI Cards</keyword> and Payment Services since it was listed on the bourses in March 2020.</li><li>In Q4 2020, SBI Card's profits fell by 66% compared to the same period last year, to ₹83.5 crore from ₹249 crore.</li><li>The company also created a provision of ₹489 crore to account for the economic concerns arising due to the Covid-19 pandemic.</li><li>On the flip side, SBI Card's asset quality improved, with its non-performing assets declining to 2.01% from 2.44% a year earlier.</li></ul>SBI Cards and Payment Services today posted its Q4 earnings (January-March 2020), revealing a fall of 66% in its profits to ₹83.5 crore, while its bad debts and impairment losses rose by 138% to ₹838 crore on a year-on-year basis. “Considering the possible effects from the pandemic relating to COVID-19, the company has performed sensitivity analysis and based on current estimates has created a specific provision of Rs 489 crore,” SBI Card said in a release. The company also posted an improvement in asset quality, with non-performing assets decreasing to 2.01% from 2.44% during the same period last year. <div type="image" title="SBI Card stock price since launch" msid="75647993" hostid="261" caption="&amp;lt;p&amp;gt;SBI Card stock price since launch&amp;lt;/p&amp;gt;"></div> SBI Card was listed on the bourses in March this year at ₹661 against the issue price of ₹755, with the Coronavirus crisis and aggressive pricing causing the stock to<a href="https://www.businessinsider.in/business/news/sbi-cards-lists-on-the-worst-possible-day-and-its-stock-slips-13-on-debut/articleshow/74656454.cms"> lose 13% of its value</a> on debut. <div type="Article" hostid="261" msid="75285293" title="Here's why SBI Cards share price may jump 30% in the next one year, according to Bank of America-Merrill Lynch" mstype="2" mssubtype="0"></div> Here’s why analysts are bullish on SBI Card According to the latest Bank of America Securities report dated April 21, the SBI Card stock has the potential to regain most of its lost ground over the next one year. “Despite factoring the near-term impact of COVID-19, we see strong long-term growth supported by SBIC’s diversified model,” the report says. The report states that the SBI Card stock could bounce back to ₹680 in the next one year, which is an upside of 19% based on the closing price as of yesterday, May 7. It is to be seen if the latest earnings from the company changes estimates. See also: <a href="https://www.businessinsider.in/finance/news/heres-how-the-sbi-cards-stock-has-performed-since-its-debut-on-march-16/articleshow/75285293.cms">Here's why SBI Card share price may jump 30% in the next one year, according to Bank of America-Merrill Lynch</a> <a href="https://www.businessinsider.in/stock-market/news/sbi-cards-share-price-down-by-a-third-since-ipo/articleshow/75126409.cms">₹10,000 invested in SBI Card during IPO is worth about ₹6,700 now⁠— here’s why</a> <a href="https://www.businessinsider.in/business/news/sbi-cards-lists-on-the-worst-possible-day-and-its-stock-slips-13-on-debut/articleshow/74656454.cms">SBI Card lists on the worst possible day and its stock slips 13% on debut</a>

SBI Card profit gets squeezed by bad loans, impairment charge, and a big provision for  COVID-19

<ul><li><keyword id="6534999" type="General" weightage="100" keywordseo="sbi-card" source="Orion">SBI Card</keyword>, the second largest credit card issuer in India, reported a 106% year-on-year increase in profit in Q1 FY23.</li><li>The SBI group company also revealed that its overall customer spends increased by 80%, while new accounts surged 48%.</li><li>Despite the positive results, the card issuer is off to a slow start in FY23 across spends, cards and transactions.</li></ul>SBI Card, one of the leading credit card issuers in India, announced its June quarter results with a healthy increase in profit to ₹627 crore, more than doubling from ₹305 crore a year ago. It also announced a 33% surge in its revenue to ₹3,263 crore, while its interest income grew by a more modest 20% to ₹1,387 crore. SBI Card is currently the second largest credit card issuer in India, with a market share of 18.4%, behind HDFC Bank, which has a 22.4% share, reveals the latest report by the Reserve Bank of India. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY23 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY22 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹3,263 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹3,016 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹2,451 crore </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Interest income </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,387 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,266 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,153 crore </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹627 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹581 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹305 crore </td></tr></tbody><tbody></tbody><tbody></tbody></table> Source: Company reports The overall positivity in its numbers is also reflected by another key metric –spends of its credit card holders. According to SBI Card’s exchange filing, while the company managed to add 48% new accounts in Q1 FY23 along with a 19% increase in its active credit cards to 14.3 million, the total credit card spends grew 79% to ₹59,671 crore in the April-June 2022 period. <div type="image" title="SBI Card average spends per card Q1 FY23." msid="93186898" hostid="261" caption="&amp;lt;p&amp;gt;SBI Card average spends are increasing&amp;lt;/p&amp;gt;"></div> Net non-performing assets, another key metric for financial services companies, declined to 0.79% in this period, from 0.88% a year ago. Interestingly, corporate spends grew at a much faster rate than retail spends – while corporate customers increased their spends at 16%, retail customer spends increased only 9% sequentially. Despite the slowdown, retail spends contribute the most, being 3x higher than corporate spends. On the other hand, the increase in provisions was relatively modest at 5% sequentially, to ₹503 crore. <cmsannotation type="cmsannotation" annotationid="Despite the positivity, growth outlook lower" comment="subhead" text="Despite the positivity, growth outlook lower">Despite the positivity, growth outlook lower</cmsannotation> Although the numbers so far paint a positive picture, SBI Card’s growth outlook remains a little dull. According to the company, its FY23 has kicked off at a slower pace, with its share across cards issued, spends and transactions all declining when compared to the previous two years. <div type="image" title="SBI Card outlook Q1 FY23." msid="93186909" hostid="261" caption="&amp;lt;p&amp;gt;SBI Card&amp;#39;s FY23 is off to a slow start&amp;lt;/p&amp;gt;"></div> It remains to be seen if the company’s projections for the rest of FY23 improve. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-net-profit-zooms-2x-even-as-high-commodity-prices-stress-margins/articleshow/93160137.cms">Maruti Suzuki net profit zooms 2x even as high commodity prices stress margins</a> <a href="https://www.businessinsider.in/business/telecom/news/5g-spectrum-auctions-big-money-is-in-but-no-bidding-war-yet/articleshow/93156289.cms">5G spectrum auctions: Big money is in but no bidding war yet</a> <a href="https://www.businessinsider.in/business/corporates/news/it-is-attrition-rates-and-not-the-wage-hikes-dampening-indian-it-cos-earnings/articleshow/93120202.cms">It is attrition rates and not the wage hikes dampening Indian IT cos earnings</a>

SBI Card doubles its profit as its customers increase spends by 80% – but FY23 off to a slow start

<ul><li><keyword id="116253" type="General" weightage="20" keywordseo="sbi-cards" source="Orion">SBI Cards</keyword> is the second largest issuer of <keyword id="12065182" type="General" weightage="20" keywordseo="credit-cards-in-india" source="Orion">credit cards in India</keyword>.</li><li>As of July 2021, every fifth credit card issued in India was by SBI Cards.</li><li>With the company’s credit card business bouncing back, find out what analysts have to say.</li></ul>SBI Cards share price fell by over 4% on Tuesday (September 21) after US-based private equity firm, The Carlyle Group offloaded a 3.4% stake in the company, mopping up approximately ₹3,267 crore from the markets. The slump in SBI Cards’ share price today is on expected lines, since Carlyle Group’s price band was ₹1,021-1,072. Shares were trading around ₹1,025 as of 11:00 a.m., on September 21. <div type="image" title="SBI Cards 01_08_21 to 21_09_21." msid="86390687" hostid="261" caption="&amp;lt;p&amp;gt;SBI Cards share price since August&amp;lt;/p&amp;gt;"></div> The Carlyle Group held a 15.89% stake in SBI Cards when the company listed on the Indian stock exchanges in March 2020. Since then, it has pared its stake multiple times, and with the most recent sale, its holding is down to 3.14%. However, for existing investors in the company, there’s good news on the horizon. Analysts at Edelweiss are bullish on the company and its future prospects. “We view SBI Cards as a concept stock offering high-growth and high-returns by the only listed player of its kind for a foreseeable future. It would thus sustainably command a premium accorded to few Indian stocks,” stated an Edelweiss report dated September 15. It's not just the analysts at Edelweiss who are bullish on the company. Here are a few brokerage recommendations for SBI Cards: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Upside </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,350 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">32% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">ICICI Direct </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,200 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,200 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr></tbody></table> <cmsannotation type="cmsannotation" annotationid="Credit card business is bouncing back" comment="subhead" text="Credit card business is bouncing back">Credit card business is bouncing back</cmsannotation> SBI Cards posted a strong comeback in the June quarter, reporting a sharp jump in earnings and lower provision for bad debts. Here’s a quick look at some of the key metrics of SBI Cards’ financial performance: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Jun-21 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Mar-21 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Jun-20 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net interest income </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹924 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹828 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,138 cr </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹3,046 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1754 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹3,933 cr </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net NPA </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">0.9% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">1.2% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">0.4% </td></tr></tbody></table>Source: Company reports While its performance is still not back to the levels of the previous year, SBI Cards has posted a substantial improvement across all the three metrics compared to the previous quarter. Analysts at Motilal Oswal predict that it’s only going to get much better from here onwards. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">FY22 (est.) </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net interest income </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹4,006 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹3,884 cr </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹1,664 cr </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">₹985 cr </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Net NPA </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">1% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">1.2% </td></tr></tbody></table>Source: Motilal Oswal Given that SBI Cards is the second largest credit card issuer in the country, it bodes well for both the company as well as its shareholders. <div type="image" title="Credit Card market share July 2021." msid="86390698" hostid="261" caption="&amp;lt;p&amp;gt;Credit Card market share in July 2021&amp;lt;/p&amp;gt;"></div> “Spends have started showing a gradual improvement from Jun’21. The same is likely to rise further, as economic activity picks up and restrictions ease,” stated a Motilal Oswal report dated July 24. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/collapse-of-evergrande-may-haunt-tata-steel-jspl-nalco-and-other-metal-stocks/articleshow/86387294.cms">The collapse of Evergrande, one of China’s largest home developers, is “not a Lehman moment” but the fear may haunt steel and metal stocks in India</a> <a href="https://www.businessinsider.in/stock-market/news/sbi-cards-adani-ports-hcl-tech-and-other-top-stocks-to-watch-out-for-on-september-21/articleshow/86386406.cms">SBI Cards, Adani Ports, HCL Tech and other top stocks to watch out for on September 21</a> <a href="https://www.businessinsider.in/business/corporates/news/how-mukesh-ambani-owned-reliance-industries-crossed-the-15-lakh-crore-market-capitalisation/articleshow/85896448.cms">All the things that drove Reliance Industries’ shares to a 11-month high and over the coveted ₹15 lakh crore mark</a>

SBI Cards is down as Carlyle dumps shares but the credit cards business is bouncing back

New Delhi, May 8 () SBI Cards and Payment Services on Friday reported a 66 per cent decline in net profit at Rs 84 crore for the March quarter on additional provisions due to the COVID-19 crisis as well as rise in total expenses. The credit card company, promoted by country's largest lender SBI, had posted a net profit of Rs 249 crore in the corresponding January-March period of the preceding fiscal year 2018-19. The company, operated under the brand name SBI Card, registered 23 per cent growth in revenues from operations to Rs 2,433 crore during the fourth quarter of FY20, as against Rs 1,983 crore in same period a year ago, it said in a regulatory filing. Total income rose by 21 per cent to Rs 2,510 crore from Rs 2,076 crore. The total expenses of the company jumped 42 per cent to Rs 2,398 crore from Rs 1,691 crore. For the full year 2019-20, net profit grew by 44 per cent to Rs 1,245 crore from Rs 865 crore in preceding fiscal. "Excluding COVID-19 impact, PAT for FY20 would have been Rs 1,662 crore, growth of 92 per cent," it said in a release. Total income in FY20 was up by 34 per cent at Rs 9,752 crore, from Rs 7,287 crore a year earlier. SBI Card said it registered 28 per cent growth in cards, 27 per cent growth in spends and 30 per cent growth in receivables during FY20. On the diversified revenue stream, it said interest income was 52 per cent of revenue from operations. The company's gross non performing assets (NPAs) stood at 2 per cent at the end of March 2020. The impact of COVID-19 on credit quality is uncertain and additional provisions of Rs 489 crore have been created, it said, adding portfolio analysis has also been undertaken and significant measures have been implemented to mitigate credit risks. The board of SBI Card approved payment of interim dividend of Re 1 per share (10 per cent ) for the financial year ended March 31, 2020. During the quarter ended March 2020, the company had come up with its Initial Public Offering (IPO) and was listed on BSE and NSE. On the COVID-19 pandemic, SBI Card said globally, countries and businesses are under lockdown and there is a high level of uncertainty about the duration of the lockdown and the time required for things to get normal. "The extent to which COVID-19 pandemic will impact the Company's operations and financial results is dependent on the future developments, which are highly uncertain," it added. Citing RBI circulars in March and April, it said SBI Card has offered a moratorium on credit card dues to eligible borrowers in accordance with a board-approved policy. "In this backdrop, the company, based on current estimates, has created an additional management overlay on Expected Credit Loss (ECL) amounting to Rs 48,925.57 lakh during the quarter and year ended March 31, 2020," it said. Stock of SBI Card closed 2.15 per cent down at Rs 561.45 on BSE. KPM ABMABM

SBI Card Q4 net plunges 66 pc to Rs 84 cr on COVID-19 provisions, rise in expenses

<ul><li>Four banks and a finance company made it to the top ten Indian firms in the <keyword id="627892" type="General" weightage="20" keywordseo="forbes-global-2000-list" source="Orion">Forbes Global 2000 list</keyword>.</li><li>Reliance Industries topped the list this year after it became the first Indian company to cross $100 billion in revenues.</li><li>Three Indian banks <keyword id="13222" type="General" weightage="20" keywordseo="sbi" source="Orion">SBI</keyword>, <keyword id="45123" type="General" weightage="20" keywordseo="hdfc" source="Orion">HDFC</keyword> Bank and <keyword id="42456" type="General" weightage="20" keywordseo="icici" source="Orion">ICICI</keyword> Bank occupied the next three spots in the Indian top ten.</li></ul>Four banks and a finance company made it to the top ten Indian firms in the Forbes Global 2000 list. The list of top ten is dominated by banks followed by energy companies like RIL, ONGC and Indian Oil. TCS is the only tech major to make it to the list. <cmsannotation type="cmsannotation" annotationid="Mukesh Ambani’s RIL holds on tight to its top spot" comment="subhead" text="Mukesh Ambani’s RIL holds on tight to its top spot">Mukesh Ambani’s RIL holds on tight to its top spot</cmsannotation> Reliance Industries added one more feather to its cap by topping the list this year after it became the first Indian company to <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-first-indian-company-to-near-100-billion-in-revenue/articleshow/91381614.cms" data-type="tilCustomLink">cross $100 billion in revenues</a>. At a global level, the company climbed <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-is-top-indian-company-in-forbes-global-2000-list/articleshow/91536920.cms" data-type="tilCustomLink">two spots this year</a> to the 53rd rank and a market cap above $228 billion, as per the list. It is also the only Indian company which made it within the top 100 of the global list. <cmsannotation type="cmsannotation" annotationid="Indian banks also get the spotlight" comment="subhead" text="Indian banks also get the spotlight">Indian banks also get the spotlight</cmsannotation> Three Indian banks SBI, HDFC Bank and ICICI Bank occupied the next three spots in the Indian top ten. Finance company HDFC came sixth while <keyword id="96188" type="General" weightage="20" keywordseo="axis" source="Orion">Axis</keyword> Bank occupied the tenth spot - highlighting the growth in the sector. <cmsannotation type="cmsannotation" annotationid="Central Bank policies might have aided the banks" comment="subhead" text="Central Bank policies might have aided the banks">Central Bank policies might have aided the banks</cmsannotation> Equity markets in general have been gaining from the lowered interest rates since the pandemic began. Banks too gained from the eased interest rates, and that coupled with good credit growth and improved recovery from stressed assets too helped both public and private sector banks. All the banks in the list declared a good growth in profits for the quarter ending March with good growth in net interest margins. <cmsannotation type="cmsannotation" annotationid="Economic revival a key factor" comment="subhead" text="Economic revival a key factor">Economic revival a key factor</cmsannotation> With the economy reviving, the banking sector continues to stabilize. Even analysts believe that the worst has passed for the lenders’ asset quality and loans. Pankaj Pandey, head of research at ICICI Direct, earlier this year said, “Banks have focused on balance sheet strengthening.” <cmsannotation type="cmsannotation" annotationid="State Bank of India (SBI)" comment="Subhead" text="State Bank of India (SBI)">State Bank of India (SBI)</cmsannotation> Global Rank: 105 Sales: $54.42 billion Market Cap: ₹3,97,189 crore ($51 billion) State Bank of India (SBI) is the second biggest public Indian company at the moment, with a global ranking of 105. It ranked number 2 in the list after RIL and has recently said that its provisioning for bad loans has come down, while its fourth quarter profits went up by 41%. <cmsannotation type="cmsannotation" annotationid="HDFC Bank" comment="subhead" text="HDFC Bank">HDFC Bank</cmsannotation> Global Rank: 153 Sales: $22.51 billion Market Cap: ₹7,16,641 crore ($92 billion) HDFC Bank came third in the top ten list and is one of the leading private sector banks in India. It has over 6,342 banking branches, 18,130 ATMs across 3,188 cities and towns in India. The company added 1,000 branches in the last fiscal year. <cmsannotation type="cmsannotation" annotationid="ICICI Bank" comment="subhead" text="ICICI Bank">ICICI Bank</cmsannotation> Global Rank: 204 Sales: $21.89 billion Market Cap: ₹4,70,856 crore ($60 billion) ICICI Bank is one of the largest private sector banks in the country which has been working towards reviving its books by outperforming in its growth and improving its margins for the last few years. It has a network of 5,418 branches and 13,540 ATMs across India. <cmsannotation type="cmsannotation" annotationid="Housing Development Finance Corporation (HDFC)" comment="subhead" text="Housing Development Finance Corporation (HDFC)">Housing Development Finance Corporation (HDFC)</cmsannotation> Global Rank: 268 Sales: $18.48 billion Market Cap: ₹3,86,636 crore ($49 billion) Housing Development Finance Corporation (HDFC) which ranked sixth in the top ten companies - is one of India’s leading financing companies. The growth in home loans and home purchases during the pandemic has helped the NBFC grow and improve its margins too. <cmsannotation type="cmsannotation" annotationid="Axis Bank" comment="subhead" text="Axis Bank">Axis Bank</cmsannotation> Global Rank: 431 Sales: $11.41 billion Market Cap: ₹1,95,272 crore ($25 billion) Axis Bank, which came in at number 10 in the Indian Forbes ranking list, has gained from lower credit costs and steady growth across all its business areas. It also acquired Citibank’s consumer business covering loans, credit cards, wealth management and retail banking in March this year. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/finance/news/rupee-continues-to-fall-to-record-lows-and-it-might-affect-your-food-education-healthcare-and-other-expenses/articleshow/91535452.cms">Rupee continues to fall to record lows and it might affect your food, education, healthcare and other expenses</a> <a href="https://www.businessinsider.in/tech/news/elon-musk-puts-44-billion-twitter-deal-on-hold-over-fake-accounts/articleshow/91540983.cms">Elon Musk puts $44 billion Twitter deal on hold over fake accounts</a> <a href="https://www.businessinsider.in/business/news/indigo-flies-the-most-passengers-abroad-air-india-comes-next/slidelist/91537381.cms">Indigo flies the most passengers abroad — check out Air India, Spicejet’s share</a>

You Searched For "sbi provisions" and got 5 results

SBI Card profit gets squeezed by bad loans, impairment charge, and a big provision for COVID-19

Rounak Jain

SBI Card doubles its profit as its customers increase spends by 80% – but FY23 off to a slow start

Rounak Jain

SBI Cards is down as Carlyle dumps shares but the credit cards business is bouncing back

Rounak Jain

SBI Card Q4 net plunges 66 pc to Rs 84 cr on COVID-19 provisions, rise in expenses

PTI

SBI to ICICI — five banks among top 10 public Indian companies in the Forbes Global 2000 list

Kritti Bhalla

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