SBI Cards Q4 Review - Risk-Reward Turns Favourable: Prabhudas Lilladher
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Prabhudas Lilladher Report
SBI Cards and Payment Services Ltd.’s Q4 FY21 earnings stood mixed as business cyclicality dampened spends traction but asset quality held up.
Asset quality continues to show signs of improvement in the nature of -
- mere 48 basis points spike in gross non-performing assets at 4.99% for Q4 FY21 as against our expectations of 5.7%.
- perceivably stressed book declines from 13.8% in Q3 FY21 to 12.6% in Q4 FY21
- Reserve Bank of India RE book at Rs 19 billion (7.6% of overall receivables) stood down 19% QoQ
- 36% of RBI RE book (Rs 6.9 billion) carry 80% provision cover and has already slipped into a non-performing asset
- recoveries surged 10% QoQ; write-offs stood up.
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