SBI Card net profit more than doubles to Rs 627 crore in June quarter

SBI card shares of the lender were trading 4.2 per cent higher than the previous day's close at Rs 926.1

SBI Cards and Payment Services’ (SBI Card’s) net profit jumped 106 per cent year-on-year (YoY) to Rs 627 crore in the April–June quarter (first quarter, or Q1) of 2022-23 (FY23), aided by healthy growth in interest income and fall in impairment losses. In the corresponding period a year ago, its net profit was to the tune of Rs 305 crore.
 
Shares of the lender were trading 4.2 per cent higher than the previous day’s close at Rs 926.1.
 
Interest income grew 20 per cent YoY to Rs 1,387 crore in Q1FY23, compared with Rs 1,153 crore in Q1 of 2021-22 (FY22), while fee and commission income jumped 40 per cent YoY to Rs 1,538 crore during the same period. Total revenue grew 33 per cent YoY to Rs 3,263 crore in Q1.

 
Impairment losses and bad debt expenses dropped 30 per cent YoY to Rs 450 crore, but sequentially increased 15 per cent.
 
Asset quality improved, with gross non-performing assets (NPAs) at 2.24 per cent in Q1FY23 — down 2 basis points (bps) sequentially. Net NPAs were down 1 bps during the same period.
 
The company added 902,000 new accounts in Q1 — up 48 per cent YoY, but down 10 per cent sequentially.
 
Cards-in-force grew 19 per cent YoY to 14.3 million as of Q1FY23, against 12 million as of Q1FY22.
 
Spends grew 79 per cent YoY and 10 per cent sequentially to Rs 59,671 crore in Q1FY23.
 
While retail spends jumped 68 per cent YoY and 8.6 per cent sequentially to Rs 45,488 crore, corporate spends were up 130 per cent YoY and 15 per cent sequentially to Rs 14,183 crore.
 
Receivables in Q1 were about Rs 33,215 crore — up 35.91 per cent YoY and 6 per cent sequentially.
 
SBI Card has 18.4 per cent and 18.6 per cent market share in cards-in-force and spends, respectively, according to the data released by the Reserve Bank of India in May.