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SBI Cards share slips 7.5% post weak Q2 earnings

Share of SBI Cards declined up to 7.5% to Rs 827.5 against previous close of Rs 894.75 on BSE

twitter-logoBusinessToday.In | October 22, 2020 | Updated 17:44 IST
SBI Cards share slips 7.5% post weak Q2 earnings
SBI Cards stock has lost 5% in the last 2 days

SBI Cards and Payment Services share on Thursday fell over 7% after the firm reported weak earnings in Q2.  Share of SBI Cards declined up to 7.5% to Rs 827.5 against previous close of Rs 894.75 on BSE.

Total 1.19 lakh shares of the firm changed hands amounting to turnover of Rs 10.30 crore. Market cap of SBI Cards fell to Rs 80,207 crore on BSE.

The stock has lost 5% in the last 2 days.  The share stands higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

In a month, the share has gained 5%.

In September quarter, net profit fell 46% to  Rs 206 crore against net profit of Rs 381 crore in the year-ago period.

The company attributed the decline in net profit to the Covid-related slowdown and the loan moratorium mandated by Reserve Bank of India.

SBI Cards Q2 results: Profit falls 46% to Rs 206 crore, revenue up 6%

"The impact of COVID-19 has led to significant volatility in global and Indian financial markets, which may persist even after restrictions related to the pandemic outbreak are lifted. While there have been some improvements in economic activities in the current quarter, the continued slowdown has impacted new credit card originations, use of credit cards by customers and the efficiency in collection efforts," the company said in the regulatory filing.

Gross non-performing assets rose to 4.29 per cent of gross advances as on September 30, 2020 as against 2.33 per cent as on September 30, 2019.

Interest income rose 10 per cent year-on-year to Rs 1,275 crore, while other income jumped 24 per cent YoY to Rs 99 crore during the September quarter of the current fiscal.

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