SBI Card falls 6% as Q4 profit drops 19% YoY to Rs 534 crore

SBI Cards and Payment Services reported a 19.4% year-on-year (YoY) drop in net profit to Rs 534.2 crore for the quarter ended 31 March 2025, down from Rs 662.4 crore in the same period last year. The decline was mainly driven by higher credit costs and provisions amid a challenging consumer lending environment.

Despite the fall in profit, revenue from operations rose 7.5% YoY to Rs 4,674 crore, supported by growth in card usage and fee-based income.

SBI Card added 1.109 million new accounts during the quarter, up from 1.029 million a year earlier. Total cards-in-force rose 10% YoY to 2.08 crore as of March 2025. Total customer spends increased 11% YoY to Rs 88,365 crore in Q4FY25, while receivables grew 10% to Rs 55,840 crore.


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Asset Quality and Provisions

The gross NPA ratio stood at 3.08% and net NPA at 1.46% as of 31 March 2025. Provision coverage ratio was 53.46% for the quarter.

Impairment losses and bad debt expenses surged 48% YoY to Rs 4,872 crore in FY25, up from Rs 3,287 crore in FY24. This contributed to a 20% decline in full-year PAT, which came in at Rs 1,916 crore compared to Rs 2,408 crore in the previous year.

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Full-Year Financials

Total income for FY25 rose 7% to Rs 18,637 crore from Rs 17,484 crore in FY24. However, finance costs jumped 22% to Rs 3,178 crore, reflecting the impact of higher interest rates. Gross advances (credit card receivables) rose to Rs 55,840 crore, while net worth improved to Rs 13,853 crore from Rs 12,156 crore a year ago.

SBI Card Shares Price Target

According to Trendlyne, the average target price for SBI Card is Rs 804, indicating a 13% downside from current levels. The stock has a ‘Hold’ rating based on consensus from 24 analysts.

SBI Card Shares Price Performance

In the previous session, SBI Card shares closed 1.2% higher at Rs 926.9. The stock has surged 37% year-to-date and 24% over the last one year. The company’s market capitalisation stands at Rs 88,181 crore.

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