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Shares of SBI Cards and Payment Services on Friday fell sharply by 10.5 per cent on weak Q2 weak earnings. The stock is down for the third straight day and are currently trading at 7.52 per cent lower at ₹789.20.
Q2 results
SBI Card, the country’s largest pure play credit card issuer, has reported a 46 per cent decline in net profit for the second quarter ended September 30 at ₹206 crore (₹381 crore). On a sequential basis, the second quarter net profit was down 48 per cent when compared to net profit of ₹393 crore reported in the first quarter of this fiscal.
The bottomline performance was weighed down by additional management overlay provision (mainly due to Covid-19) of ₹268 crore for the quarter under review, taking the overall provision as of September 30, 2020, to ₹758 crore.
It maybe recalled that the credit card issuer had, while closing books for the March quarter this fiscal, provided ₹490 crore towards management overlay provision (Covid-19-related impact).
Meanwhile, SBI Card’s total income for the second quarter of this fiscal stood at ₹2,513 crore against ₹ 2,376 crore in same quarter last fiscal. Total income in the first quarter this fiscal stood at ₹ 2,193 crore.
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