SBI Cards Q3FY25 Results: Net Profit Drops 30% YoY to ₹383.2 Crore

SBI Cards and Payment Services Ltd reported a 30% year-on-year (YoY) decline in its net profit for the third quarter of FY25 (October-December 2024). The company’s profit fell to ₹383.2 crore, compared to ₹549.1 crore in the same period last year.

Meanwhile, revenue from operations saw a 1% YoY growth, reaching ₹4,767 crore, up from ₹4,742 crore in Q3FY24.

Key Financial Metrics

Higher Write-Offs Impact Profit

SBI Cards’ net profit was affected by increased write-offs, which significantly reduced earnings. The company’s total operating cost dropped 13% YoY to ₹2,107 crore, down from ₹2,426 crore in the previous year.

Rising NPAs Indicate Asset Quality Pressure

• Gross Non-Performing Assets (NPA) increased to 3.24%, up from 2.64% in Q3FY24.
• Net NPA also rose to 1.18%, compared to 0.96% last year.

Sharp Increase in Loan Impairments

• Impairment on financial instruments surged 49% YoY to ₹1,313 crore from ₹883 crore last year.
• Gross write-offs saw a massive 89% jump, reflecting rising delinquencies in the credit card segment.

NIM Contraction & Industry Trends

SBI Cards’ net interest margin (NIM) fell 31 basis points YoY to 10.6%, signalling pressure on profitability. The company, along with other Indian lenders, is witnessing higher delinquencies in credit cards and personal loans, leading to asset quality concerns.

Despite a rise in revenue, higher bad loans and write-offs continue to impact SBI Cards’ profitability as the company navigates a challenging lending environment.

About SBI Cards and Payment Services Limited

SBI Cards and Payment Services Limited is a key non-banking financial company (NBFC) registered with the RBI that does not accept deposits. It specialises in issuing credit cards to consumers across India. Headquartered in Gurgaon, Haryana, the company operates as a subsidiary of the State Bank of India, the country’s largest commercial bank.

As of January 29, 2025, at 9:25 AM IST, SBI Cards share price is trading at ₹743.55, down 2.05% (-₹15.55) for the day. The stock opened at ₹727.00, reached a high of ₹755.20, and a low of ₹721.00. 

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