SBI Card Q3 net up 32% YoY to Rs 509 cr on strong interest income

Dip in impairment losses and bad debts suppports performance, stock dips on company missing street estimates

Vijay Jasuja, CEO, SBI Card during launch of SimplyCLICK SBI Card in Kolkata
The company added about 1.63 million accounts in Q3FY23
BS Reporter
2 min read Last Updated : Jan 24 2023 | 11:43 PM IST
SBI Card has reported a 32 per cent year-on-year (YoY) jump in net profit in the October-December (Q3) quarter, aided by healthy interest income and drop in impairment losses and bad debts. Its profit after tax (PAT) stood at Rs 509 crore during this period, compared to Rs 386 crore in the year-ago period.
 
However, the company's stock tumbled 2.73 per cent to Rs 746.20 at close on the BSE, as the firm missed street estimates on profitability, due to higher finance cost.
 
Interest income of the company increased by 26 per cent YoY to Rs 1,609 crore in Q3FY23 while income from fees and services was up 14.61 per cent YoY to Rs 1,670 crore. Total income was up 16 per cent YoY to Rs 3,656 crore during this period.
 
Its cost of funds of the company rose to 6.3 per cent versus 5.4 per cent in the previous quarter even as yields remained stable sequentially at 16.4 per cent as the high yielding revolver mix was stable after falling in the last quarter.
 
Meanwhile, impairment and bad losses of the company fell 15 per cent YoY to Rs 533 crore in Q3FY23. Its asset quality saw improvement on a YoY basis but sequentially it inched up marginally, with gross non-performing assets (NPAs) down 19 basis points (bps) YoY and up 8 bps sequentially to 2.22 per cent at the end of December quarter. Similarly, net NPAs was down 3 bps YoY but up 2 bps sequentially to 0.80 per cent during this period.

 


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Topics :Q3 resultsSBI Cards

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