SBI Card Q4 Profit Slips 20%

25 Apr 2025 , 11:17 PM

SBI Cards and Payment Services Ltd. released its financial results for the January–March quarter of FY25, revealing a mixed performance impacted by rising delinquencies and higher provisions for bad loans.

The company’s net non-performing assets (NPAs) stood at 1.46% as of March 2025, up from 0.99% in the same quarter last year, indicating increased stress on asset quality. Due to the rise in bad loans, impairment losses and bad debts surged to ₹1,245 crore, compared to ₹944 crore in the corresponding quarter of the previous year.

For the full financial year 2024-25, net profit declined 20% year-on-year to ₹1,916 crore, down from ₹2,408 crore in FY24. On the positive side, total income rose to ₹18,637 crore in FY25, up from ₹17,484 crore in the previous financial year. The company’s balance sheet expanded to ₹65,546 crore as of March 31, 2025, compared to ₹58,171 crore a year earlier.

Heightened delinquencies and increased provisioning continued to weigh on SBI Card’s bottom line, with a similar profit dip reported in the past two quarters.

Write-offs and bad loan provisions jumped 32% in Q4 FY25, further impacting profitability. Despite challenges, net interest margin (NIM) improved by 29 basis points to 11.2%, supported by lower finance costs. The company also saw healthy growth in customer base, with cards-in-force increasing 10% year-on-year by the end of March 2025.