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SBI Cards Q1 profit shrinks 22% to Rs 305 cr due to rise in bad loans
Total income of SBI Card during the quarter rose to Rs 2,451 crore as against Rs 2,196 crore a year ago.
 "SBI Cards Q1 profit shrinks 22% to Rs 305 cr due to rise in bad loans")
- The SBI-promoted card issuance company had reported a net profit of Rs 393 crore in the April-June quarter of the previous fiscal.
- On asset quality front, the company's gross non-performing assets more than doubled to 3.91 per cent.
- Card spends during the June quarter increased to Rs 33,260 crore as against Rs 19,085 crore in the same period of 2020-21.
New Delhi: SBI Cards and Payment Services Ltd (SBI Card) on Friday reported a 22 per cent decline in net profit to Rs 305 crore in the first quarter ended June 30 due to higher delinquencies.
The SBI-promoted card issuance company had reported a net profit of Rs 393 crore in the April-June quarter of the previous fiscal (2020-21).
Total income of SBI Card during the quarter rose to Rs 2,451 crore as against Rs 2,196 crore a year ago, SBI Cards said in a regulatory filing.
Segment-wise, the interest income declined to Rs 1,153 crore from Rs 1,412 crore in the same quarter a year ago, while income from fees and services rose to Rs 1,099 crore from Rs 668 crore in the first quarter of 2020-21. Other income doubled to Rs 89 crore from Rs 43 crore in the year-ago period.
On asset quality front, the company's gross non-performing assets more than doubled to 3.91 per cent of gross advances as on June 30, 2021 as against 1.35 per cent as on June 30, 2020.
Total gross advances (credit card receivables) were Rs 24,438 crore by the end of the June quarter against Rs 23,330 crore in the same period last fiscal.
Card spends during the June quarter increased to Rs 33,260 crore as against Rs 19,085 crore in the same period of 2020-21.
Receivables grew by 5 per cent to Rs 24,438 crore from Rs 23,330 crore. Card-in-force grew by 14 per cent to 1.20 crore from 1.06 crore a year ago.
As per the capital adequacy norms issued by the RBI, the company's capital to risk ratio consisting of tier I and tier II capital should not be less than 15 per cent of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. Also Read: Gold Price Today, 23 July 2021: Gold trading cheaper by Rs 8700 from record highs, right time to buy?
As of June 30, 2021, the company's Capital Adequacy Ratio was 26.1 per cent compared to 24.4 per cent as of June 30, 2020, it said. Also Read: Google invites users for Android Auto beta testing, here’s how to join
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