SBI Cards and Payment Services on Friday reported a 5 per cent drop in net profit to Rs 593 crore in the June quarter due to a rise in delinquencies. The SBI-promoted card issuance company (SBI Card) had reported a net profit of Rs 627 crore in the April-June period of the previous fiscal.
Its total income during the first quarter of the current fiscal rose to Rs 4,046 crore against Rs 3,263 crore a year ago, SBI Cards said in a regulatory filing.
Segment-wise, the interest income in the first quarter increased to Rs 1,804 crore from Rs 1,387 crore a year ago, while income from fees and commission rose to Rs 1,898 crore compared to Rs 1,538 crore last year.
The company’s gross non-performing assets rose to 2.41 per cent of gross advances as of June 30, against 2.24 per cent a year ago. Similarly, net non-performing assets increased to 0.89 per cent from 0.78 per cent a year ago.
As a result, impairment losses and bad debt expenses increased 60 per cent at Rs 719 crore in the first quarter as compared to Rs 450 crore in the year-ago period.
“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. As of June 30, 2023, Company’s CRAR was 22.9 per cent compared to 24.7 per cent as of June 30, 2022,” according to the regulatory filing.
(With PTI Inputs)
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