Sbi Cards Shares In Focus Today As Q4 Profit Falls On Rising Defaults

SUMMARY

Shares of SBI Cards and Payment Services are successful attraction coming aft nan SBI limb reported a 19% diminution successful profits to Rs 534 crore for nan March 2025 quarter. This marks a important alteration from nan Rs 662 crore profit reported successful nan aforesaid 4th of nan erstwhile year. The diminution is chiefly attributed to an summation successful defaults, impacting nan company's bottommost line. However, SBI Cards managed to boost its full income to Rs 4,832 crore, up from Rs 4,475 crore a twelvemonth earlier, pinch liking income besides rising to Rs 2,415 crore from Rs 2,139 crore. Gross non-performing assets (NPAs) accrued to 3.08% of gross advances, compared to 2.76% a twelvemonth ago.

Net non-performing assets besides roseate to 1.46% from 0.99% astatine nan extremity of nan 4th fourth of nan erstwhile fiscal year. The emergence successful defaults led to an summation successful impairment losses and bad debts, which soared to Rs 1,245 crore from Rs 944 crore. For nan afloat fiscal twelvemonth 2024-25, SBI Cards reported a 20% diminution successful profit, amounting to Rs 1,916 crore against Rs 2,408 crore successful nan erstwhile financial year. Despite these challenges, nan company's full income for nan fiscal twelvemonth accrued to Rs 18,637 crore from Rs 17,484 crore. The equilibrium expanse stood astatine Rs 65,546 crore arsenic of March 31, 2025, up from Rs 58,171 crore a twelvemonth ago.

The summation successful NPAs could awesome imaginable challenges for SBI Cards arsenic it navigates a competitory marketplace landscape. The company's financial wellness is intimately watched by analysts, fixed its important domiciled successful nan in installments paper sector. The emergence successful defaults whitethorn necessitate a strategical reappraisal to mitigate risks and bolster financial resilience. Experts propose that while nan emergence successful full income indicates robust operational capabilities, nan summation successful bad debts highlights underlying vulnerabilities. The marketplace will beryllium attentive to SBI Cards' strategies to reside these issues and support its maturation trajectory amid evolving marketplace conditions.

Published on: Apr 25, 2025 8:51 AM IST