SBI Cards Net Profit Rises 75% on Lower Credit Costs

what happened

Moody's reports that SBI Cards and Payment Services lifted its net profit by 75% annually in the September quarter, reaching 778 crore against 445 crore a year earlier. The main driver was a steep drop in credit provisions, which fell 37% to 819 crore, along with better asset quality.

Total income rose 3% to 5,302 crore from 5,136 crore. Net interest margin contracted by 42 basis points to 10.8%. The gross NPA ratio fell to 1.90% from 2.85%, and the net NPA ratio to 0.77% from 1.29%, while gross write-offs dropped 34% to 849 crore.

Management, speaking through managing director Salila Pande, said the company kept focusing on profitable customer acquisition, engagement, efficiency and portfolio quality. Still, corporate card spending shrank and receivables declined, and total card spending rose only 3% to 1.11 lakh crore.

why it matters

Profit growth came mainly from smaller loan losses rather than from faster business expansion, so investors should weigh how durable the result is. With modest portfolio growth, spending and receivables in the coming quarters will show whether the core business recovers.

market impact

SBI Cards: profit gain came from lower provisions, while weak spending growth limits the business

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