The net profit of SBICards and Payment Services rose 15% year-on-year(y-o-y) in July-September due to a growth in receivables. The company has posted a net profit of Rs 603 crore in the quarter under review, up 2% on a sequential basis. The bottom-line was largely in line with the Rs 604 crore estimated by Bloomberg. SBICard is the country’s only listed credit card issuer.
Credit card receivables rose 19% y-o-y to Rs 45,078 crore in the quarter under review. Overall revenue rose 22% y-o-y to Rs 4,221 crore in the September quarter, aided by the growth in receivables. Cards-in-force rose 21% y-o-y to 17.9 million as on September 30.
The market share for cards-in-force rose to 19.2% as on September 30 from 19.1% a year ago. Market share for spends rose to 18% as on September 30 from 17.8% a year ago.
Total income rose 22% y-o-y to Rs 4,221 crore in the quarter under review aided by a growth in interest income, fees and commission income. Interest income rose 28% y-o-y to Rs 1,902 crore in the September quarter. Fees and commission income rose 23% y-o-y to Rs 1,974 crore.
Gross non-performing asset ratio rose to 2.43% as on September 30 from 2.14% a year ago. Net non-performing asset ratio rose to 0.89% as on September 30 from 0.78% a year ago.
The weakening of the company’s asset quality comes when Reserve Bank of India(RBI) has cautioned lenders against rising share of unsecured personal loans, considering the higher asset quality risks associated with the segment.
The company’s impairment losses and bad debt expenses rose 36% y-o-y to Rs 742 crore in the September quarter. Net interest margin fell 92 basis points(bps) y-o-y to 11.3% in the September quarter.
Abhijit Chakravorty took charge as the company’s new managing director and chief executive officer effective August 12. He has taken over in the role from Rama Mohan Rao Amara.