SBI Card's Q4 net profit soars by over 11% to ₹662 crore

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SBI Card's Q4 net profit soars by over 11% to ₹662 crore

Team FS

29/Apr/2024

Key Points:

Robust Growth: SBI Cards and Payment Services Ltd witnessed an 11.5% year-on-year increase in net profit, reaching ₹662.4 crore in the January-March period of the financial year 2023–24.
Revenue Surge: The company's revenue soared by 15.6% year-on-year to ₹4,347.7 crore in Q4FY24, driven by significant growth in interest income and fees.
Steady Expansion: SBI Card's total income for the fiscal year 2023-24 rose by 22% to ₹17,484 crore, reflecting its continued expansion and market resilience.

Amidst market turbulence, SBI Cards and Payment Services Ltd has emerged with strong financial results for the January-March period of the financial year 2023–24. The company reported an impressive 11.5% jump in net profit to ₹662.4 crore compared to the same period last year, highlighting its resilience in the face of challenges.

Robust Growth:
SBI Card's stellar performance can be attributed to several factors, including a surge in interest income and fees. Interest income witnessed a remarkable 28% increase to ₹2,139 crore in the January-March quarter, underlining the company's robust lending activity and effective management of interest-bearing assets. Additionally, fees and commission income grew by 6% to ₹2,209 crore, reflecting the company's diversified revenue streams and strong customer base.

Revenue Surge:
The company's revenue witnessed a significant uptick, reaching ₹4,347.7 crore in Q4FY24, marking a substantial 15.6% increase compared to the same period last year. This impressive growth underscores SBI Card's ability to capitalize on market opportunities and meet the evolving needs of its customers. Despite prevailing market uncertainties, the company has demonstrated resilience and agility, driving its revenue to new heights.

Steady Expansion:
Looking beyond the quarterly performance, SBI Card's annual financials for the fiscal year 2023-24 paint a picture of steady expansion and sustained growth. The company's total income surged by 22% to ₹17,484 crore, reflecting its robust business fundamentals and strategic initiatives. This steady expansion is indicative of SBI Card's strong market position and its ability to navigate challenges while delivering value to shareholders and stakeholders.

Market Response:
Despite its strong financial performance, SBI Card's stock price closed at ₹750 apiece, experiencing a marginal decline on the NSE. Year-to-date, the stock price has corrected by more than 2%, contrasting with a 3% gain in the Nifty index. However, it's worth noting that the one-year return on the scrip stands at a negative 4.3%, against a Nifty gain of 25%, indicating the broader market volatility and the challenges faced by the financial sector.

In conclusion, SBI Cards and Payment Services Ltd's robust financial performance amidst market volatility underscores its resilience, agility, and strategic focus. With steady growth in net profit, revenue, and total income, the company continues to strengthen its position in the competitive financial services landscape. As it navigates through evolving market dynamics, SBI Card remains committed to delivering value to its customers, shareholders, and the broader economy.

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SBI Card's Q4 net profit soars by over 11% to ₹662 crore

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