SBI Card Faces Profit Decline Amid Rising Delinquencies

SBI Cards and Payment Services Ltd reported a 33% decrease in net profit, marking a fall to Rs 404 crore in Q2 due to increased delinquency. Despite this, total income increased by 8%, reaching Rs 4,556 crore. Asset quality deteriorated, with gross NPAs rising significantly.

SBI Cards and Payment Services Ltd (SBI Card), a significant player in the credit card industry, has reported a 33% reduction in net profit for the September quarter, amounting to Rs 404 crore. This downturn, attributed to an increase in delinquency, contrasts with the Rs 603 crore profit recorded a year prior.

Despite the decrease in net profit, the company's total income for the second quarter of the FY rose by 8% to Rs 4,556 crore compared to Rs 4,221 crore from the same period last year. The interest income segment registered a 20% boost, totaling Rs 2,290 crore, while other income sources fell by 2%.

The company's asset quality saw slight degradation; gross non-performing assets climbed to 3.27% from the previous 2.43%. Similarly, net NPAs increased to 1.19% from 0.89%. Notably, the expenses related to impairment losses and bad debts surged 63% to Rs 1,212 crore. Furthermore, the capital adequacy ratio dropped to 22.1% from 23.3% as of September 2023.

(With inputs from agencies.)