SBI Cards Shares Fall Ahead Of June Quarter Earnings

SBI Cards on Thursday announced appointment of Ashwini Kumar Tewari as Managing Director & CEO of the company.

SBI Cards Shares Fall Ahead Of June Quarter Earnings

SBI Cards shares fell as much as 2.43 per cent to hit an intraday low of Rs 737.

SBI Cards and Payment Services share price fell as much as 2.43 per cent to hit an intraday low of Rs 737 ahead of its June quarter earnings announcement and announcement of plans to raise funds to the tune of Rs 1,500 crore via issuance of Non-Convertible Debentures (NCDs). SBI Cards which was listed on March 16 saw a weak debut after its shares listed at a discount of 12 per cent compared with the issue price of Rs 755. Meanwhile, since the listing, SBI Cards shares managed to close above its issue price of Rs 755 on Friday.

SBI Cards is expected to announce its June quarter earnings later in the day. In quarter ended March 2020, SBI Cards and Payment Services had posted a 66.41 per cent fall in net profit to Rs 83.54 crore. SBI Cards said its revenue from operations came in at Rs 2,433.24 crore in the fourth quarter of financial year 2019-20, marking a year-on-year increase of 22.69 per cent. SBI Card said the coronavirus (COVID-19 pandemic) has led to unprecedented challenges in the economic situation.

Analysts said that investors will closely watch out for the hit SBI Cards took on account of COVID-19 related moratorium announced by the Reserve Bank of India.

SBI Cards on Thursday announced appointment of Ashwini Kumar Tewari as Managing Director & CEO of the company, as nominated by its parent State Bank of India, with effect from August 1 for a period of two years.

Mr Tewari is currently country head of US operations for the State Bank of India and is posted at New York.

As of 12:33 pm, SBI Cards shares were trading 1.58 per cent lower at Rs 743, underperforming the Sensex which was up 0.7 per cent.