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SBI Cards and Payments share rises 12% post strong Q4 earnings

SBI Cards and Payments share rises 12% post strong Q4 earnings

Stock of SBI Cards and Payments climbed 12.62% to Rs 1,035 to Rs 919 on NSE

SBI Cards stock has gained after 3 days of consecutive fall. SBI Cards stock has gained after 3 days of consecutive fall.

SBI Cards and Payments share rose over 12% in early trade after the firm reported a 110% rise in Q4 net profit. Stock of SBI Cards and Payments climbed 12.62% to Rs 1,035 to Rs 919 on NSE.

The stock has gained after 3 days of consecutive fall. Market cap of the firm stood at Rs 87,435 crore. The share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.  

 The stock has gained 68.36% in one year and risen 9.34% since the beginning of this year.

On Monday, SBI Cards share closed 2% lower at Rs 919.10. SBI Cards reported a profit after tax of Rs 175 crore in Q4, up 110% from Rs 84 crore in the corresponding period of previous fiscal.

Return on average assets was recorded at 2.6 per cent in Q4 FY21 against 1.3 per cent while the return on average equity was at 11.2 per cent against 6.5 per cent in Q4 FY20, the company said.

However, total income fell to Rs 2,468 crore in Q4 from Rs 2,510 crore in the same quarter a year ago.

Total expenses were lower at Rs 2,234 crore compared to Rs 2,398 crore earlier.

Why SBI Cards share rose over 7% today

For the full year 2020-21, net profit declined 21 per cent to Rs 985 crore from Rs 1,245 crore in the preceding fiscal.

With regard to asset quality, the company registered a deterioration with gross non performing assets (NPAs) more than doubling to 4.99 per cent at the end of March 2021 compared to 2.01 per cent at March 2020.

Net non-performing assets rose to 1.15 per cent against 0.67 per cent earlier.

The capital adequacy ratio was 24.8 per cent (Q4 FY20: 22.4 per cent).