SBI Card Reports Decline in Net Profit

Mumbai: SBI Cards has reported a 6.4% decline in net profit to Rs. 556 crore for the June quarter, compared with Rs. 594 crore a year earlier. This downturn is attributed to higher impairment losses and bad debts, which have offset revenue growth.

Financial Highlights

Total revenue saw a 12% increase to Rs. 5,035 crore, driven by an 11% rise in interest income and a 13% increase in fees and commission income. However, operating expenses jumped 17% to Rs. 2,123 crore, and finance costs rose 6% to Rs. 813 crore due to higher receivables.

Market Position and Asset Quality

The company expanded its card usage, with cards-in-force rising 10% year-on-year to 2.12 crore. Despite this, asset quality deteriorated marginally, with gross NPAs at 3.07% and net NPAs rising to 1.42%.

Capital Adequacy

SBI Cards maintained a strong capital adequacy ratio of 23.2%, with Tier I capital at 17.9%, well above the RBI's requirement.