NEW DELHI: SBI Cards and Payment Services Ltd (SBI Card) on Tuesday reported a 33% decline in net profit to Rs 404 crore for the September quarter on increase in delinquency.
The pure-play credit card company, promoted by the country’s largest lender State Bank of India (SBI), had reported a net profit of Rs 603 crore in the previous quarter a year earlier. However, the total income in the second quarter of the current fiscal year rose 8% to Rs 4,556 crore, from Rs 4,221 crore a year ago, SBI Card said in a regulatory filing. The interest income grew 20% to Rs 2,290 crore, while income from other sources declined 2% to Rs 2,131 crore. There was slight deterioration in the company’s asset quality with the gross non-performing assets rising to 3.27% of the gross advances as of September, from 2.43% a year earlier.
Net NPAs (bad loans) also rose to 1.19% from 0.89% in the corresponding quarter of the previous year. Impairment losses and bad debts expenses increased 63% to Rs 1,212 crore in the September quarter as compared to Rs 742 crore a year earlier, it said. On capital adequacy, the company said the ratio fell to 22.1% from 23.3% at the end of September 2023. ENS