SBI Cards and Payment Services Q1 Results: Gross NPAs rise to 2.41% of gross advances as of June 30, against 2.24 per cent a year ago
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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.
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“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.
