Analysts downgrade SBI Card as poor asset quality, rising costs bite in Q3

SBI Card share price: Shares of the credit card arm of State Bank of India (SBI) tanked 6.5 per cent to Rs 710.5 per share on the BSE in Monday's intraday trade

Most analysts have downgraded the stock of SBI Cards and Payments (SBI Card) as the credit card issuer posted weak results during the December quarter (Q3) of financial year 2023-24 (FY24). The sub-par show, analysts said, was for the eighth straight quarter.

With this, they have slashed their earnings estimates by as much as 20 per cent over FY24-26 amid near-term pressure points in the company's growth outlook.

"SBI Cards, yet again, reported a miss on earnings (of 10 per cent), with net profit at Rs 549 crore, and return on asset (RoA) at 4.1 per cent, due