The company is back from the de-growth of the lockdown to consistent growth in cards. Though risk stays a concern
SBI cards Q3 report is out! As one of the companies i closely follow, here’s the quick summary. With some graphs on growth.
Here’s how the outstanding cards have grown in the last 10 months. The number of accounts has steadily grown with about 140k average accounts added each month including churn in the last 5 months. Though this depends on the accuracy of their reported data.
The net cards added have also steadily grown. Sept was especially good with 185k accounts net added. They added about 146k cards in Nov. This is from the lows of April 20, when they lost 48k cards.
Net profit dipped 52% to Rs. 210 crore. In the previous year during this period, their profit was at Rs. 435 crore
It’s income grew marginally to Rs. 2540 crore against Rs. 2563 crore during the same period last year
It’s provisions were increased to Rs. 1113 crore as against Rs. 758 crore the last time. A 44% increase in provisions.
Gross NPAs stood at 1.61% and net NPAs stood at .56%. However if they had classified accounts this number would go up to 4.51% and 1.58%
Interest income fell to Rs. 1168 crore from Rs. 1282 crore. But fees income rose to Rs.1107 crore from Rs.1081 crore.
Very interest stats — the company says their active cards grew 15% to 1.15 cr. As per the RBI site for data updated in Nov, SBI cards currently has 11295428 outstanding cards.
The next quarter’s report will be interesting as we will find out the full impact of the moratorium and if higher provisioning will be further required. The company will hopefully also classify accounts.
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