SBI Cards and Payment Services Ltd - 1QFY21 - Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd

"SBI Cards reported an overall good set of numbers for Q1FY21. When lockdown begun investors were concerned about asset quality issues, however, SBI cards positivity surprised by reporting a very low number of the moratorium. Moratorium % to loan book declined from 29% in Q4FY20 to 6.7% in Q1FY21. Its active credit cards increased by 20% despite the lockdown. NIM Improved 260bps QoQ/414bps YoY as SBI card able to reduce the cost of fund and able increase yield on loan book. Total income declined by 5% YoY, primarily driven by plunge in other income 82% YoY. Controlled operating expenses helped cost to income ration to improve by 635bps to 47.2%. And finally, the Lower tax rate of the new regime helped SBI card to report PAT growth of 14% YoY."

Shares of SBI Cards and Payment Services Ltd was last trading in BSE at Rs. 785.40 as compared to the previous close of Rs. 751.80. The total number of shares traded during the day was 514840 shares at an average price of Rs. 786.66.

The stock hit an intraday high of Rs. 795.50 and intraday low of Rs. 773.05.

Source : Equity Bulls

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