SBI Card Q3 profit up 84% at Rs 386 cr on card spends, decline in bad loans

New Delhi: SBI Cards and Payment Services on Monday reported 84 per cent jump in net profit at Rs 386 crore for the December quarter 2021-22 on account of healthy card spending, decline in bad loans and higher income from other sources. .

The pure-play credit card issuer, promoted by the country’s largest lender SBI, posted a net profit of Rs 210 crore in the same quarter a year ago.

SBI Card said in a release that the company’s total revenue grew 24 per cent to Rs 3,140 crore during the quarter under review, as against Rs 2,540 crore in the same period of 2020-21.

SBI Card said the growth in earnings was mainly due to higher earnings from fees and services during the quarter.

On other key indicators, the company saw a 10 per cent increase in new accounts volume at 10,08,000 as against 9,18,000 in the year-ago quarter. Card-in-force increased by 15 per cent to Rs 1.32 crore and total spend increased by 47 per cent to Rs 55,397 crore.

Receipts rose 13 per cent to Rs 29,129 crore from Rs 25,749 crore in the year-ago period.

The company’s asset quality improved in the form of gross non-performing assets (NPAs), which declined to 2.40 per cent of gross debt as against 4.51 per cent in Q3 2020-21.

Net NPAs fell from 1.60 per cent to 0.83 per cent.

However, its finance cost grew 6 per cent to Rs 277 crore during the quarter, while total operating cost rose 28 per cent to Rs 1,719 crore.

SBI Card said the company’s total gross advances (credit card receivables) at the end of December 2021 stood at Rs 29,129 crore as against Rs 25,114 crore as on March 31, 2021.

Shares of SBI Card closed at Rs 814.10 on BSE, down 4.28 per cent from the previous close.

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