SBI Card Result Declared
SBI Cards and Payment Services (SBI Card) recorded a 67 percent increase in net profit for the September quarter, at Rs 345 crore, thanks to strong retail and corporate expenditure growth.
In the same time a year before, the pure-play credit card company had a net profit of Rs 206 crore.
From Rs 2,510 crore in Q2 FY21 to Rs 2,695 crore in Q2 FY22, total income increased by 7% to Rs 2,695 crore. According to SBI Card, the increase is mostly attributable to increasing income from fees and services throughout the quarter.
Finance costs decreased by 4% in the reported quarter, to Rs 254 crore from Rs 264 crore. Total operational costs, on the other hand, increased by 25% to Rs 1,383 crore. According to SBI Card, the rise in operating costs is related to increasing business volumes in Q2 FY22.
As of September 2021, the credit card business stated it has made a total management overlay provision of Rs 231 crore.
Impairment losses and bad debts charges totaled Rs 594 crore, a decrease from Rs 862 crore the previous year.
The number of new accounts opened in Q2 FY22 was 9,53,000, up 39 percent over the previous quarter’s figure of 6,88,000.
The company’s card-in-force increased by 14% to 1.26 crore by the end of September this year, among other key KPIs. From Rs 24,863 crore to Rs 35,070 crore, retail spending increased by 41%.
Corporate spending increased by 80% to Rs 8,491 crore, up from Rs 4,728 crore previously. During the September quarter, receivables increased by 12% to Rs 26,741 crore.
By the end of September, the company had significantly decreased its bad assets, with gross non-performing assets (NPAs) falling to 3.36 percent from 7.46 percent. Net NPAs also decreased from 2.70 percent to 0.91 percent.
In terms of market share (available till August 2021), SBI Card reported a 19.4 percent card-in-force share and a 19 percent spending share for H1 FY22.
SBI Card’s shares ended the day on the BSE at Rs 1,124.55 per share, down 1.01 percent from the previous close.