SBI Card Q3Fy25 Result: The SBI card declared the results of the third quarter of FY 2025 on Tuesday, which has been weak with expected. The company’s net profit was Rs 383 crore in the December quarter, which is 30% less than the same period last year. Experts believe that the huge increase in the right-off was the main reason for this decline.
30% declines in profits
The NET profit of SBI card was recorded at Rs 383 crore, while according to the market estimate it should have been Rs 459 crore. It was told by the company that there is an increase of 89% in the amount of right-off behind this decline, which reached Rs 1354 crore in this quarter. Regarding this, the company said, “We are struggling with high right-off and credit card defaults, which are directly impacting the profit.”
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Stability in revenue, expenditure increased
The total revenue of SBI card was Rs 4619 crore, which is the same as last year. However, the Net Interest Margin (NIM) was reduced to 10.6% with a decline of 31 basis points (BPS). Apart from this, the total expenditure incurred by the card holders also recorded a decline of 11%, which stood at Rs 860.93 billion. Rama Mohan Rao Amma, Managing Director and CEO of SBI Card, said, “We are working on better managing current economic challenges and credit card defaults. Our focus is on controlling NPAs and performing better in future. . “
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Increase in NPA and Defaults
The company’s gross NPA ratio declined marginally to 3.24% from 3.27% of the previous quarter. However, this figure is much higher than 2.64% of the same period last year. This is a major cause of concern for SBI card, because high NPAs have a direct impact on the company’s income and profitability.
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10% growth in issuing cards
The company said that the number of card issuing has increased by 10%, but due to high defaults and right-offs it is affecting profits. Rama Mohan Rao Amma said, “We are working on long -term development strategies and trying to promote customers’ expenditure capacity. Along with this, new policies are being implemented to control the defaults.”
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The third quarter results of SBI card did not live up to the market expectations, but the company’s long -term plans and corrective steps are expected to improve in future. If the right-off and NPA improves, then the company’s profits can return to the track again.
