Street disappointed with SBI Cards & Payment Services' Q4 performance

Spending growth decelerated by 18 per cent Q-o-Q, as corporate spending declined 35 per cent Y-o-Y due to the impact of the recent RBI guidelines

SBI Cards & Payment Services reported mixed results for the January-March quarter (Q4) of FY24. While it managed to deliver strong earnings growth, it saw a perceptible decline in net interest margin (NIM) and suffered deteriorating asset quality. Taken together, the market was disappointed with the share dropping 3.5 per cent. 

The margin contraction was 39 basis points (bps) quarter-on-quarter (Q-o-Q) to 10.9 per cent coupled with poorer asset quality. The gross NPA was up 20 bps Q-o-Q to 2.8 per cent.

However, profit after tax (PAT) grew 21 per cent Q-o-Q to Rs 660 crore, while net interest income