SBI Cards and Payment Services, a subsidiary of State Bank of India, on Thursday reported 46 per cent decline in its net profit at Rs 206 crore for the second quarter ended September 30, 2020. The only listed credit card company in India had posted net profit at Rs 381 crore in the same period last year, SBI Cards said in a regulatory filing.
The total income, however, rose by 6 per cent to Rs 2,513 crore in Q2 FY21 as compared to Rs 2,376 crore in the corresponding period last year, SBI Cards and Payment Services said in a filing to the Bombay Stock Exchange.
The interest income of the company rose 10 per cent year-on-year to Rs 1,275 crore, while other income jumped 24 per cent YoY to Rs 99 crore during the September quarter of the current fiscal.
During the quarter under review, total operating cost decreased by 9.6 per cent to Rs 1,109 crore from Rs 1,226 crore for Q2 FY20. Finance costs decreased by 17.3 per cent to Rs 264 crore for Q2 FY21 from Rs 319 crore for Q2 FY20.
On the asset quality front, the gross non-performing assets stood at 4.29 per cent of gross advances as on September 30, 2020 as against 2.33 per cent as on September 30, 2019.
SBI Card said that its card-in-force grew 16 per cent to 1.10 crore from 0.95 crore in the year ago period. The spends were at Rs 29,590 crore, down 10.8 per cent from Rs 33,176 crore. New accounts volume increased to 6,88,000 accounts during Q2 FY21, compared with 2,88,000 in the year-ago period.
The credit card company's total balance sheet stood at Rs 24,313 crore, while its net worth was Rs 5,949 crore as of September 30, 2020.
Reacting to Q2 earnings, shares of SBI Cards and Payment Services closed trade at Rs 853.35, down 4.63 per cent, against previous closing price of Rs 894.75 on the BSE.