SBI Card share price drops over 7% in Q2 results as brokerages cut target price

Breaking News: The CBI Card share price has now dropped over 7% because the brokerages have gone cut has targeted the price after the announcement of Quarter 2 results. The SBI Cards and Payments Services has now reported a 15% increase in the net profit for Q2FY24 at Rs. 603 crore from Rs. 526 crore in 2023. The revenue of SBI has been seen at the 22% growth to Rs. 4,221 crore from Rs. 3453 crore YoY. There is a slight rise in the stress levels which is going to keep the credit costs elevated in the term. This is a very big shocking news in the market. Read till last to learn everything.

SBI Card

The SBI Cards and Payments Services share price has now seen a decline of over 7% in the early morning on 30th October 2023, Monday after SBI announced the official results for Quarter 2 of FY24. The reports have shown that the SBI card shares have fallen as much as 7.45% to Rs. 732.05 per piece on the Bombay Stock Exchange (BSE). The State Bank of India Cards and Payments Services has now reported a 15% increase in the official net profit for Q2FY24 at Rs. 603 crores from Rs. 526 crores in the previous year’s quarter. In which the revenue was seen at 22% growth to Rs. 4221 crore from Rs. 3453 crore YoY.

The elevated provision has now dragged down the earnings where the margin is contracted to a total of 12 bps sequentially to 11.3% because of the decreasing yield as the mix of EMI and the revolver stood stable. The brokerage firm Motilal Oswal Financial Services. SBI Cards and Payments Services has now officially claimed the muted quarter which is characterized by the elevated provisions and also the further compression in margins. The management of the company is going to indicate the rise in the stress levels where the company is going to keep the credit costs elevated in the near term. Continue reading in the next paragraph to learn more.

Also Read:  Angel One Stock Hit All-Time High In Q2FY24 performance

The brokerage firm has claimed that the mix of revolvers and EMI lands is going to remain stable on the other hand the management is indicating the current hardening of interest rates is going to use the pressure on the funding costs in the next quarters. This decision is going g to drive the margin compression in the 2HFFY24 as it is going to outlook in any increase in the mix of Revolver and EMI loans which remain uncertain.

Prakash Israni
Prakash Israni

Prakash, the content creator for Techballad, has built a solid reputation for himself over the course of more than ten years of blogging