sbi cards and payment services share price: SBI Cards and Payment Services plunges 7% after Q2 earnings

Shares of fell 7% to Rs 800 in Friday’s intraday trade after the company reported a modest set of earnings for the second quarter of the financial year 2022-23.

The net profit of the company was up 52% year-on-year (YoY) and down 16% quarter-on-quarter (QoQ) to Rs 526 crore. The higher YoY profit growth was due to a spike in income and lower provisions.

SBI Cards and Payment Services reported net interest income (NII) growth of 21% YoY and 3% QoQ at Rs 1,116 crore. The net interest margin for Q2FY23 declined by 90 bps to 12.3% on a sequential basis, mainly due to an increase in the cost of funds. Provisions for the second quarter FY23 were down 8% YoY but up 21% QoQ.

Asset quality of the company improved with gross non-performing assets at 2%, down 10 basis points sequentially and 122 bps YoY. Net NPA was down 13 bps to 0.78% during the same period.

At 11.11 am, the scrip was trading 5% lower at Rs 813 over its previous day’s closing price of Rs 857 apiece. The stock has fallen nearly 27% in the past one year, while it has plunged about 12% year-to-date.

As per Trendlyne data, the highest target for stock goes up to Rs 1,383, while the average estimate of Rs 1,148.7 shows an upside potential of around 41% from the current prices.

Out of the 24 analysts covering the stock, 22 of them have strong buy and buy ratings while only two have strong sell and sell ratings.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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