SBI Card puts THIS mechanism in place for COVID stress relief

Photo Credit: ET

SBI Cards and Payment Services (SBI Card) on Monday said it has framed a COVID-19 related stress resolution mechanism in accordance with the RBI's recently announced relief measures.

Pursuant to RBI's circular dated May 5, 2021, the company has framed the resolution framework 2.0 for COVID-19 related stress of individuals and small businesses, based on the tenets as enumerated in the central bank guidelines, SBI Card said in a regulatory filing.

"The policy covers norms on offering relief to stressed cardholders by means of resolution plans and the related provisioning and asset classification norms," it said.

Earlier this month, the Reserve Bank came out with the Resolution Framework 2.0 under which individuals and small businesses having exposure up to Rs 25 crore can opt for loan restructuring if they had not availed its earlier scheme.

The RBI on May 5 said it decided to extend such a facility for restructuring of existing loans without a downgrade in asset classification in view of the uncertainties created by the resurgence of the pandemic in India.

The pure-play credit card company, promoted by the country's largest lender SBI, recorded flat growth in its total income at Rs 9,714 crore for the fiscal ended March 2021.
Net profit fell by 21 percent year on year at Rs 985 crore.

The stock of SBI Card ended at Rs 1092.05 apiece on BSE, up 2.63 percent from the previous close.