SBI Card Q2FY25 Results:SBI Cards and Payment Services has released the results for the second quarter of the financial year 2024-25. According to these results released on Tuesday, the company’s net profit (PAT) in the second quarter fell by 33% on an annual basis (YoY) to Rs 404 crore. The net profit of the company in the same period last year was Rs 603 crore. However, during the same period the company’s revenue has seen an increase of 8%.
What was the reason for the decline in profits?
In the second quarter of the financial year 2024-25, the net profit of SBI Card declined by 33% to Rs 404 crore. In the same quarter last year, the company’s profit was Rs 603 crore. The main reason for this loss of the company is increasing expenses and provisioning, which has put pressure on profits.
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improvement in revenue
The company’s total revenue increased by 8% to Rs 4,421 crore, from Rs 4,087 crore in the second quarter of the last financial year. Interest income also increased by 15.2% to Rs 2,289.74 crore, which was Rs 1,901.75 crore in the same quarter last year.
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New accounts and increase in spending
SBI Card opened 9.04 lakh new accounts in the quarter ending September 2024, which shows a decline of 21% on a year-on-year basis. However, this figure remained stable quarter after quarter. The company’s total expenses stood at Rs 81,893 crore, which is 3% more than the same quarter last year and 6% more than the previous quarter.
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NPA and provisioning
The company’s gross NPA (non-performing assets) reached 3.27%, which is an increase of 84 basis points year-on-year and 22 basis points quarter-on-quarter. Net NPA reached 1.19%, which is 31 basis points higher than last year. Additionally, the company’s gross write-offs for the quarter stood at Rs 1,106 crore, which is 63% higher than last year.
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SBI Card’s quarterly results have been mixed. While on one hand there has been a decline in the company’s profits, on the other hand there has been improvement in revenue and interest income. The company has registered an increase in expenses and receipts, due to which better results can be expected in the coming times.
