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Below is quote on SBI cards Q1FY22 result by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

SBI Cards reported a 18.9% YoY degrowth in Net interest income for Q1FY22 to Rs. 924 crore on the back of 5% YoY growth in loan to Rs. 23,041 crore. Fee income for the quarter was up by 64.5% yoy to Rs. 1099 crore while operating expenses were up by 28.6% yoy. As a result pre provisioning profits were up by 4.1% YoY to Rs. 1056 crore. Provisioning for the quarter was up by 33.2% YoY and but down by 8.2% qoq to Rs.646 crore. Consolidated PAT for the quarter was down by 22.4% YoY to Rs. 367 crore but was higher by 74.3% qoq. Despite the second Covid wave asset quality has improved sequentially with GNPA and NNPA improving to 3.91% and 0.88% from 4.99% and 1.15% in Q4FY21. Total restructured book also decreased to 6% of book from 8% of book in Q4FY21. Overall SBI cards Q1FY22 results have surprised positively on most fronts and especially on asset quality which has improved sequentially despite the second Covid wave. Overall we have a positive outlook on SBI cards post the Q1FY22 results.

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