SBI Cards Q3 Results: Net profit falls 30% YoY to ₹383.2 crore

SBI Cards Q3 Results: SBI Cards and Payment Services Ltd reported a 30 per cent year-on-year fall in its consolidated net profit (attributable to owners of the company) for the fiscal's third quarter ended December (Q3FY25) to ₹383.2 crore. The company had reported a profit of ₹549.1 crore in the year-ago period. 

SBI Cards shares ended 0.71 per cent higher at ₹759 apiece on BSE. SBI Cards's consolidated revenue from operations stood at ₹4,767 crore during the quarter that ended December (Q3FY25), compared to ₹4,742 crore in Q3FY24, a year-on-year rise of one per cent. 

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SBI Cards Q3 Results: Key Metrics

Higher write-offs weighed down the company's net profit during the December quarter. The pure-play credit card company, promoted by SBI, reported a total operating cost of ₹2,107 crore, which declined by 13 per cent for the third quarter of FY25 from ₹2,426 crore in the year-ago period.

Gross non-performing assets (NPA) rose to 3.24 per cent during the quarter under review, up from 2.64 per cent a year ago. The net NPA or bad loans, too, increased to 1.18 per cent from 0.96 per cent at the end of the December quarter of the previous financial year.

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Impairment on financial instruments witnessed a 49 per cent jump to ₹1,313 crore compared to ₹883 crore in the same quarter a year ago. SBI Card, which has also been facing elevated delinquencies over the last few quarters, had also reported a drop in profit in the previous quarter.

The company said gross write-offs jumped 89 per cent from the year-ago period. SBI Card's net interest margin (NIM) contracted 31 basis points year-on-year to 10.6 per cent. Lenders and card issuers in India are grappling with asset quality stress, with higher delinquencies being reported in segments such as credit cards and personal loans.

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