SBI Cards Q1 net profit rises 14%

Share price of SBI Cards and Payment Services (SBI Cards) surged 4.5% to Rs 785.10 apiece on NSE after reporting better-than-expected earnings performance for the fiscal first quarter to June 30.
SBI Card posted 13.80% year-on-year (YoY) rise in net profit at Rs 393.29 crore for the quarter ended June 30. It had posted a net profit of Rs 345.59 crore in the corresponding quarter last year.
Total revenue from operation increased 4% YoY to Rs 2,152.20 crore during the quarter under review against Rs 2,068.28 crore in the corresponding quarter last year.
The company posted nearly 28% drop in total expenditure at Rs 134.98 crore in Q1FY21, over Rs 186.94 crore in Q1FY20.

The SBI Card share price is back near its issue price after a lackluster initial public offering (IPO). In July alone, SBI Card shares have surged by nearly 20%, suggesting that the second largest credit card issuer in India is coming out of the lockdown blues.
The SBI Card share price hit a low of Rs 495 in May. However, since then, it has shown an upward trend, surging by more than 50%.

Total market cap of the SBI Cards and Payment Services Ltd. stood at Rs 73675.24 crore.
As of 30-Jun-2020, DIIs held 2.58% stake in the firm, while foreign institutional investors held 4.23% and the promoters 69.53%.

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