The board of directors of SBI Cards and Payments Services Ltd. approved the appointment of Challa Sreenivasulu Setty as the nominee director and chairman of the company, according to an exchange filing on Friday.
Setty is also the chairman of the State Bank of India, the company's parent entity, since August this year. The largest state-run lender owns 68% stake in SBI Cards.
The appointment of Setty as SBI Cards chief will come into immediate effect, subject to the approval from the shareholders of the company, the filing stated.
Setty, an industry veteran, joined the board of SBI as managing director in January 2020.
Challa Sreenivasulu became the Chairman of State Bank of India on August 2024. He joined the SBI Board as Managing Director in January 2020. He headed retail and digital banking vertical from 2020 till 2022, and international banking, global markets and technology portfolio thereafter.
Setty has also led several task forces and committees set up by the Government of India.
SBI Card Q2 Performance
SBI Cards recorded a 33% year-on-year slide in its net profit for the second quarter of the current fiscal 2025. It reported a bottomline of Rs 404 crore three months ended Sept. 30, as compared to Rs 603 crore in the same period last year.
The company's total income, however, jumped by 8% to Rs 4,556 crore in the July- September period as against Rs 4,221 crore in the year-ago quarter.
SBI Card's interest income for the second quarter reached Rs 2,290 crore, a 20% increase from Rs 1,902 crore during the same period last year. However, the net interest margin declined to 10.6%, down from 10.9% in the June quarter.
Shares of SBI Cards on Friday closed 0.69% higher at Rs 679.70 apiece on the National Stock Exchange, compared to a 2.39% advance in the benchmark Nifty. The share price fell by 7.11% in the last 12 months and by 10.52% on a year-to-date basis.
Out of the 27 analysts tracking the company, five have a 'buy' rating on the stock, nine recommend 'hold' and 13 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 1.6%.
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