ICICI Securities Limited
SBI Cards (SBIC) reported QoQ PPOP growth of 6% but 14% higher credit cost led to flattish PAT of INR 5.9bn in Q1FY24. While earnings growth has faced challenges of adverse change in mix (delay in revolver build up post covid), higher cost of funds (rate hikes), higher opex (BNPL competition), regulatory challenges (RBI master circular) and higher credit costs including a long-tailed impact of covid (as seen from ~14bps impact from a FY19 cohort in Q1FY24), it has still reported 27% earnings CAGR over the last 5 years ending FY23.
Number of MF schemes increased from 22 to 32 in Mar 2025 qtr.
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