SBI Cards Q2 Review - Mixed Quarter; Operating Earnings Modest On Lower Revolve Rate: Motilal Oswal
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Motilal Oswal Report
SBI Cards and Payment Services Ltd. reported a mixed quarter characterised by a sharp growth in spends, while pre-provision operating profit declined by 7% YoY on lower revolve rate/margin pressure.
The company reported strong traction in both retail and corporate spends.The growth outlook remains steady.
Margin declined by 70 basis points QoQ to 14.1%, exerting pressure on net interest income growth, while other income grew smartly at 17% QoQ.
Gross non performing asset ratio improved by 55 basis points QoQ to 3.36%, while the Reserve Bank of India restructuring book declined to Rs 10.3 billion versus Rs 13.8 billion in Q1 FY22.
SBI Cards has further provided 65%/100% on 30-90/90 days delinquent RBI RE book.
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