SBI Cards and Payment Services Ltd (SBI Card), the public lender’s dedicated credit card arm listed on the bourses, announced a 74 per cent jump in net profit for the quarter.
Total revenue from ops grew 3.6 per cent to ₹5,140.53 crore from ₹4,960.98 crore, lifting the net profit (comprehensive income) by 74.4 per cent to ₹779.08 crore from ₹446.62 crore.
This translated to a diluted EPS of ₹8.17 versus ₹4.67 for the same period last year.
At the end of the reporting quarter, it cut total liabilities to ₹51,843,57 crore from last September’s ₹55,072.53 crore.
One of the most critical things that helped SBI Card lift the bottomline was shrinking its impairment costs by 36.6 per cent to ₹819.37 crore from ₹1,292 crore .
"The company has made an additional impairment provision amounting to ₹30 crore pver and above the impairment provision computed as per the ECL model during the quarter...in view of the uncertain macroeconomic encvironment due to the prolonged geopolitical tensions," it stated in a statement to the bourses.
Following the announcement, SBI Card stock nosedived 7.3 per cent to a 52-week low of ₹525 apiece on the NSE before easing a bit and settling 3.66 per cent in the red at ₹545.55 a share.
