SBI Cards shares drop 4% after March quarter results. Should you buy, sell or hold?
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Shares of SBI Cards and Payment Services dropped 4% to the day’s low of Rs 718 on Monday after the company released its Q4 results on Friday wherein an 11% year-on-year (YoY) rise in profit after tax to Rs 662 crore for the quarter ended March 2024 was reported. Total revenue rose 14% YoY to Rs 4,475 crore in the fourth quarter of 2023-24, as against Rs 3,917 crore in the year-ago period. Interest income grew 28% YoY to Rs 2,139 crore in Q4 FY24 while the fees and commission income increased by 6% to Rs 2,209 crore in the March quarter, SBI Card said in a statement. The report further added that nearly all the other retail product lines that they follow are not showing these high delinquency ratios, making it harder to understand this divergence. For FY25, the management is guiding a steady growth in card issuances and recovery in corporate credit card spending, which were impacted by the recent guideline wherein there was a ban on specif...