Brokerage Nomura maintained a 'buy' call on SBI Cards & Payment Services.
SBI Cards, in the final minutes of Thursday's session, reported a net profit of Rs 344.9 crore for the quarter ended September, up 67.3 percent on a year-on-year basis. Revenue, however, declined 8.1 percent on year to Rs 1,173.2 crore.
SBI Cards' spending increased 31 percent on a year-on-year basis, aided by growth in both retail and corporate segments.
Spending per card, at Rs 1,42,000 in Q2, is back to pre-COVID levels now, and the company's management has highlighted that apart from international spending, all other categories are back to pre-pandemic levels now, according to Nomura.
The sharp increase in salaries especially in sectors like IT and banking will further push up spending propensity, it added.