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India's SBI Card misses Q3 profit expectations on higher write-offs

SBI Card, India's second-largest credit card issuer, reported a lower-than-expected quarterly profit for the third quarter ending December 31, 2024, due to increased write-offs and higher provisions for potential loan losses. The company's profit after tax was 5.49 billion rupees ($66.1 million), falling short of the 6.07 billion rupees anticipated by analysts. This was influenced by a significant rise in write-offs, which jumped to 7.85 billion rupees from 5.65 billion rupees the previous year, and an increase in provisions for bad loans to 10.85 billion rupees from 7.55 billion rupees. Despite these challenges, SBI Card saw a 33% increase in revenue from operations, reaching 46.55 billion rupees, driven by a 31% growth in card-in-force and a 30% rise in spending. However, the cost of funds also increased, impacting the net interest margin which contracted to 11.3% from 11.7% year-over-year.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/indias-sbi-card-misses-q3-profit-expectations-higher-write-offs-2025-01-28/ ]