SBI Cards and Payment Services saw its net profit rise 11% year-on-year(y-o-y) to Rs 662 crore in the January-March quarter due to a growth in receivables. This was around 15% higher than the Rs 578 crore Bloomberg consensus estimate.
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The company’s receivables rose 25% y-o-y to Rs 50,846 crore in the March quarter. Credit card spends rose 11% y-o-y to Rs 79,653 crore. While retail spends increased 25% y-o-y to Rs 69,189 crore, corporate spends fell 35% to Rs 10,464 crore, an investor presentation from the company showed.
The company’s interest earnings receivables, which include transactors and revolvers, remain unchanged y-o-y at 61%. Total revenue rose 14% y-o-y to Rs 4,475 crore in the quarter under review.
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The number of outstanding cards rose 13% y-o-y to 18.9 million as on March 31. The company’s new accounts fell 25% y-o-y to one million as on March 31. However, the net interest margin of the company fell 60 basis points (bps) y-o-y to 10.9% in January-March. Cost of funds rose 68 bps y-o-y to 7.4% in the quarter under review.
Asset quality woes continued at the company, with gross non-performing asset ratio rising to 2.76% as on March 31 from 2.35% a year ago. Net non-performing asset ratio rose to 0.99% as of March 31 from 0.87% a year ago.
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Impairment losses and bad debt expenses rose 50% y-o-y to Rs 944 crore in the quarter under review. Gross credit costs rose 124 bps y-o-y to 7.6% as on March 31. Its cards-in-force market share fell to 18.6% as on March 31 from 19.7% a year ago. Similarly, spends market share fell to 17.8% as on March 31 from 18.2% a year ago.
The company’s capital to risk (weighted) assets ratio stood at 20.5% as on March 31. SBI Card is India’s only listed credit card issuer.
