Gurugram, January 28, 2025 – SBI Cards and Payment Services Limited (NSE: SBICARD, BSE: 543066) has announced its Q3 FY25 financial results, posting a 6.5% year-on-year (YoY) increase in total revenue, reaching ₹4,618.69 crore, while net profit fell by 30% YoY to ₹383.23 crore, due to higher credit costs and increased operational expenses.
Key Financial Highlights – Q3 FY25 (Standalone)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹4,618.69 crore | ₹4,342.04 crore | +6.5% |
| Total Income | ₹4,766.56 crore | ₹4,555.82 crore | +4.6% |
| Net Profit (PAT) | ₹383.23 crore | ₹549.08 crore | -30.2% |
| Earnings Per Share (EPS) | ₹4.03 | ₹5.78 | -30.2% |
| Gross NPA Ratio | 3.24% | 2.76% | +48 bps |
| Net NPA Ratio | 1.18% | 0.99% | +19 bps |
| Capital Adequacy Ratio (CAR) | 22.9% | 18.4% | +450 bps |
- Revenue: ₹13,398.24 crore (+6.2% YoY).
- Net Profit: ₹1,382.10 crore (-20.8% YoY).
Key Business Metrics & Operational Highlights
- Total Cards-in-Force: 2.02 crore (+10% YoY), surpassing the two crore milestone in December 2024.
- Receivables: ₹54,773 crore, up 12% YoY.
- Retail Spends: ₹80,792 crore, up 10% YoY.
- Corporate Spends: ₹5,301 crore, up 4% YoY.
- New Account Additions: 11.75 lakh in Q3 FY25 (+7% YoY, +30% QoQ).
Key Financial & Strategic Developments
1. Rising Credit Costs Impact Profitability
- Gross Credit Costs surged by 49% YoY to ₹1,313 crore.
- Gross NPAs increased to 3.24%, reflecting higher delinquencies in unsecured loans.
- Net NPAs rose slightly to 1.18%, with a provision coverage ratio (PCR) of 64.3%.
2. Expansion of Digital & UPI-Based Transactions
- UPI spending on RuPay cards grew by 47% QoQ, with top categories including Departmental Stores, Utilities, Fuel, and Apparel.
- Online spending contribution increased to 58.5% of total transactions.
3. Capital Adequacy & Debt Management
- Capital Adequacy Ratio improved to 22.9%, well above regulatory requirements.
- Cost of Funds (COF) stabilized at 7.4% despite higher interest rates.
4. Major Festive Season Campaigns & Strategic Partnerships
- ‘Khushiyon Ka Utsav’ Festive Campaign: Over 150 promotional offers launched in collaboration with Amazon, Flipkart, and Apple.
- SBI Card Miles introduced in-flight promotions across 25 Air India aircraft.
Management Commentary
Abhijit Chakravorty, Managing Director & CEO, SBI Cards, stated:"Our strong revenue growth and card acquisitions reaffirm our leadership in India’s credit card industry. While higher credit costs impacted profitability, our continued investment in digital payments and customer engagement will drive long-term value creation."
Strategic Outlook & Investor Implications
- Focus on premium credit card offerings to enhance profitability.
- Investment in AI-based risk management to curb rising NPAs.
- Expansion in Tier-2 & Tier-3 cities to drive card adoption.