{"id":1298321,"date":"2025-07-30T17:07:08","date_gmt":"2025-07-30T11:37:08","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1298321"},"modified":"2025-07-30T17:07:43","modified_gmt":"2025-07-30T11:37:43","slug":"sbi-card-witnesses-32-increase-in-write-offs-resulting-in-less-profits","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/sbi-card-witnesses-32-increase-in-write-offs-resulting-in-less-profits\/","title":{"rendered":"SBI Card Witnesses 32% Increase In Write-Offs, Resulting In Less Profits"},"content":{"rendered":"\n

On 25th July, the India’s SBI Cards and Payment Services reported its first-quarter profit which was below the expectations\u00a0 weighed by a surge in the credit card service provider’s write-offs reportedly.<\/p>\n\n\n\n

\"SBI<\/figure>\n\n\n\n

How Did This Happen?<\/strong><\/p>\n\n\n\n

On Friday, SBI Cards<\/a> released its results for the first quarter of financial year 2026 in the post market hours.<\/p>\n\n\n\n

The results are highlighting the fact that the country’s lenders are grappling with rising bad loans especially in some sectors such as microfinance, credit cards and personal loans. <\/p>\n\n\n\n

Moving ahead the analysts have attributed this to over-leveraging and an increase in loans outstanding per borrower.<\/p>\n\n\n\n

This all started when the SBI Card, majority owned by the country’s largest lender, State Bank of India – reported a 6.5per cent fall in profit after tax to 5.56 billion rupees ($64.3 million) for the three months ended June. <\/p>\n\n\n\n

This was alarming as this profit has gone lower than analysts’ average expectations of 5.86 billion rupees, as per the data compiled by LSEG which is a leading global financial infrastructure and data provider playing a vital social and economic role in the world’s financial system.<\/p>\n\n\n\n

This release holds a significance as it markes the fourth quarter of a profit drop for SBI Card, which has faced elevated delinquencies over the last few quarters.<\/p>\n\n\n\n

While talking about this situation, the company said gross write-offs jumped 32 per cent from a year earlier to 12.80 billion rupees.<\/p>\n\n\n\n

In the meantime, the overall spending by cardholders rose 21 per cent to 932.44 billion rupees, while cards-in-force, or the sum of all credit cards issued, rose 10per <\/p>\n\n\n\n

cent from last year.<\/p>\n\n\n\n

Although there is an improvement in the company’s revenue from operations as it rose 12 per cent on-year to 48.77 billion rupees.<\/p>\n\n\n\n

There is an improvement in the gross non-performing assets ratio which improved slightly to 3.07 per cent from 3.08 per cent in the previous quarter.<\/p>\n\n\n\n

But still, it was marginally higher than 3.06per cent a year earlier.<\/p>\n\n\n\n

Results Affecting SBI Cards Share Prices <\/strong><\/p>\n\n\n\n

The results have implacted the shares of SBI Cards and Payment Services as they dropped over 6 percent on July 28. <\/p>\n\n\n\n

This was also affected after brokerages slashed their rating and target prices for the stock following its weak Q1 earnings announcement.<\/p>\n\n\n\n

If you are wondering regarding this shares, then the Yes Securities<\/a> downgraded the stock to ‘Reduce’, with a target price of Rs 847 apiece. <\/p>\n\n\n\n

It indicates a downside potential of nearly 5 percent from the previous closing price.<\/p>\n\n\n\n

Whole reasoning this, the brokerage firm said, “SBI Card\u2019s PAT was 6% below expectation, even as PPOP stood 3% better than estimate, owing to an unexpected rise in credit cost to a new peak of 9.6% (annualized).” <\/p>\n\n\n\n

Contrary to this, Emkay Global Financial Services retained its ‘Add’ rating on the stock, but reduced its target price by 5 percent to Rs 1,025 apiece. <\/p>\n\n\n\n

While giving the reason, the brokerage said, “We believe SBIC will be a key beneficiary of the policy rate cut as well as asset quality normalization cycle in the card portfolio.”<\/p>\n","protected":false},"excerpt":{"rendered":"

On 25th July, the India’s SBI Cards and Payment Services reported its first-quarter profit which was below the expectations\u00a0 weighed by a surge in the credit card service provider’s write-offs reportedly. How Did This Happen? On Friday, SBI Cards released its results for the first quarter of financial year 2026 in the post market hours. […]<\/p>\n","protected":false},"author":30,"featured_media":1298332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[8382],"class_list":["post-1298321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-sbi-cards"],"acf":[],"yoast_head":"\nSBI Card Witnesses 32% Increase In Write-Offs, Resulting In Less Profits - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/sbi-card-witnesses-32-increase-in-write-offs-resulting-in-less-profits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SBI Card Witnesses 32% Increase In Write-Offs, Resulting In Less Profits - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"On 25th July, the India’s SBI Cards and Payment Services reported its first-quarter profit which was below the expectations\u00a0 weighed by a surge in the credit card service provider’s write-offs reportedly. 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