SBI CARDS Q4FY20 Result Highlights

SBI cards declared their quarterly results for Q4 FY20. Here are the details:

Excess provisions has impacted the Q4FY20 earnings of SBI Cards. Although, the asset quality has improved. Net Interest Income saw an improvement by 50% this year. It increased to Rs 10.1 billion at a growth of 8% since last quarter. The PAT declined by 66% YoY to Rs 835 million which is a 81% cut down from last quarter. It is largely led by one-time Rs 4.9 billion COVID-19 provisioning and moratorium.

The provisions increased by 138% to Rs 8.3 billion. It was twice the estimated amount. This is a 123% increase since last quarter led by Rs 4.9 billion provisioning related to COVID-19. The operational Expenditure Opex was up by 15% at Rs 12.3 billion which declined by 3% compared to last quarter.

SBI CARDS Q4FY20 Result Highlights

Outstanding on cards increased by 28% to Rs. 10.5 million. Gross NPAs improved by 43 basis points to 2.01% compared to previous year. The market share was up by 18.2%. It improved by 68 basic points. The spends was also up by 77 basic points at 17.9% till January 2020.

The Pre-provision operating profit saw a growth at 29% to Rs 9.5 billion. It declined by just 1% since last quarter. The receivables also increased by 30% to Rs. 241.41 billion. Spends was Rs 1,309.15 billion which increased by 27%. The recommendation on this stock is to buy with a target price of Rs 724.