SBI Cards Interim Dividend Likely: March 28 Fixed As Record Date; Buy?

Market observers are focusing on SBI Cards and Payment Services Ltd. today since the company's board of directors is set to meet on Tuesday, March 19, 2024, to discuss and approve the interim dividend for FY24. In response to the announcement, SBI Cards and Payment Services Ltd.'s shares surged to an intraday high of Rs. 702.65, having begun the day on the BSE at Rs. 682.05 apiece. At around 14:17 PM, the stock was trading 2.13% higher on the BSE at Rs 699.95 per share.

SBI Cards and Payment Services Dividend Record Date

"We hereby inform that a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, March 19, 2024, inter alia, to consider declaration and payment of the Interim Dividend, if any, on the Equity Shares of the Company, for the financial year 2023-24. The interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, March 28, 2024 which is the "Record Date" fixed by the Company for the purpose, in terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," said SBI Cards and Payment Services in a BSE filing on March 14, 2024.

"Further, in accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 read with Company's Code of Conduct for Regulating, Monitoring, and Reporting of Trading by Designated Persons and for Fair Disclosure of Unpublished Price Sensitive Information, the Trading Window for dealing in the securities of the Company will remain closed from March 14, 2024 to March 21, 2024 (both days inclusive)," the company further stated in the regulatory filing today.

SBI Cards and Payment Services Financials

In the December quarter of the financial year 2023-24, SBI Card and Payment Services reported an almost 8% rise in its net profit, which came in at Rs 549 crore as opposed to Rs 509.5 crore during the same time the previous year. In Q3FY24, SBI Card's total revenue from operations was Rs 4,621.7 crore, up approximately 32% YoY from Rs 3,507.1 crore in Q3FY23. From Rs 1,609 crore in Q3FY23 to Rs 2,082 crore in Q3FY24, the credit card company's interest income climbed by 29% according to a stock exchange filing.

As of December 31, 2023, its gross advances totaled Rs 48,850 crore, compared to Rs 40,722 crore on March 31, 2023. In terms of asset quality, as of December 31, 2023, SBI Card gross non-performing assets (GNPA) were at 2.64% of gross advances, compared to 2.35% on March 31, 2023. As of December 31, 2023, net non-performing assets were at 0.96%, compared to 0.87% on March 31, 2023. The Reserve Bank of India's (RBI) capital adequacy ratio (CRAR) for the SBI Card was 18.4% as of December 31, 2023, down from 23.1% as of March 31, 2023, as per a regulatory filing.

SBI Cards and Payment Services Share Price Target

SBI Cards look oversold on the Daily charts with strong resistance at 704. A daily close above this resistance could lead to a target of 752 in the near term. Support will be at 678, said AR Ramachandran from Tips2trades.

Disclaimer

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