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Home >Companies >Company Results >SBI Cards Q1 results: Profit shrinks 22% to 305 cr as bad loans grow

SBI Cards and Payment Services (SBI Cards) reported a net profit of 305 crore for the quarter ended June 30, 2021, after a decline of 22 per cent from 393 crore in the year-ago period. The dip in net profit came on the back of rise in bad loans for the cards arm of State Bank of India (SBI).

Total income of the company increased to 2,451 crore during the quarter under review, as compared to 2,196 crore in the corresponding quarter last fiscal, SBI Card said in a regulatory filing on Friday.

SBI Cards recorded a decline in interest income to 1,153 crore during Q1 FY22, from 1,412 crore in Q1 FY21. Meanwhile, income from fees and services increased to 1,099 crore during the quarter under review from 668 crore in the same period last year.

On asset quality front, SBI Cards saw its gross non-performing assets (GNPAs) rise more than double to 3.91 per cent of gross advances as on June 30, 2021, compared to 1.35 per cent as on June 30, 2020.

Total gross advances (credit card receivables) stood at 24,438 crore at the end of the June quarter in the current fiscal, as compared to 23,330 crore in the same period last fiscal. Card spends during the period rose to 33,260 crore, as against 19,085 crore in the same period of 2020-21.

Receivables grew by 5 per cent to 24,438 crore from 23,330 crore Y-o-Y. Card-in-force grew by 14 per cent to 1.20 crore from 1.06 crore a year ago.

SBI Cards' Capital Adequacy Ratio (CAR) was 26.1 per cent as of June 30, 2021, as opposed to 24.4 per cent as of June 30, 2020. 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.

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