SBI Cards Q4 Review - Risk-Reward Turns Favourable: Prabhudas Lilladher
Representational image: Logos of Mastercard and Visa sit on credit cards in this arranged photograph. (Photographer: Andrey Rudakov/Bloomberg)

SBI Cards Q4 Review - Risk-Reward Turns Favourable: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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 -

  1. mere 48 basis points spike in gross non-performing assets at 4.99% for Q4 FY21 as against our expectations of 5.7%.
  2. perceivably stressed book declines from 13.8% in Q3 FY21 to 12.6% in Q4 FY21
  3. Reserve Bank of India RE book at Rs 19 billion (7.6% of overall receivables) stood down 19% QoQ
  4. 36% of RBI RE book (Rs 6.9 billion) carry 80% provision cover and has already slipped into a non-performing asset
  5. recoveries surged 10% QoQ; write-offs stood up.

Click on the attachment to read the full report:

Prabhudas Lilladher SBI Cards Q4Fy21 Result Review.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.