SBI Cards profit doubles to ~175 crore in Q4

SBI Cards and Payment Services reported a net profit of ~175 crore in the March quarter (Q4) of financial year 2020-21 (FY21), up 110 per cent compared with the ~84 crore it reported in the corresponding period last year. This was because of lower provisions and a significant jump in other income and income from fees and services.

Its interest income declined 20 per cent year-onyear (YOY) to ~1,072 crore in Q4, while other income more than doubled to ~159 crore. Total revenue from operations declined by 5 per cent to ~2,039 crore and total income declined by 2 per cent YOY to ~2,468 crore.

On the asset quality front, its gross non-performing assets (NPAS) at the end of Q4 stood at 4.99 per cent as against 2.01 per cent as on March 31, 2020, and net NPAS were at 1.15 per cent as against 0.67 per cent as on March 31, 2020.

Impairment and losses declined 16 per cent YOY to ~705 crore in Q4 from ~838 crore a year ago.

During the quarter, cards in force increased by 12 per cent to 11.8 million, compared with 10.5 million a year ago. Similarly, spends increased by 11 per cent to ~35,943 crore in Q4, compared with ~32,429 crore in Q4FY20.

The company added 791,000 new accounts to its fold in Q4FY21, which is less than what it had added in the same period last year and in the previous quarter. Retail spends also fell sequentially in Q4FY21 to ~29,863 crore. Similarly, corporate spends also showed a decline. Receivables, on the other hand, grew by 4 per cent to ~25,114 crore in Q4FY21, compared with ~24,141 crore in Q4FY20.

In FY21, the company’s market share increased to 19 per cent in cards in force and 19.5 per cent in spend.

The company’s capital adequacy ratio stood at 24.8 per cent at the end of Q4FY21, with tier-1 capital at 20.0 per cent. Its shares declined 2 per cent to ~919.10 on the BSE on Monday.