SBI Cards and Payment Services Ltd (SBI Card) on Monday reported 14 percent rise in net profit to Rs 393 crore in the first quarter ended June 30, mainly due to higher interest income.
The SBI promoted company had reported net profit of Rs 346 crore in April-June quarter of the fiscal ended March 2020.
Card spends during the June quarter fell to Rs 19,085 crore as against Rs 30,174 crore in the same period of 2019-20, SBI Card said in a release.
Receivables grew by 10 percent to Rs 23,330 crore from Rs 21,231 crore.
Card-in-force grew by 20 percent to 1.06 crore from 0.88 crore a year ago, while the daily average spends improved to 76.5 percent of pre-COVID levels in June 2020 compared to 54 percent in May this year, it said.
New accounts acquisition improved from 80,000 in May 2020 to 1,81,000 in June 2020; which stands at 57.6 percent of the pre-COVID average daily acquisition, the company said.
Total income of SBI Card during the quarter fell 5 percent to Rs 2,196 crore as against Rs 2,304 crore a year ago.
Segment-wise, the interest income was up 34.6 percent at Rs 1,412 crore, while income from fees and services fell 27.1 percent to Rs 668 crore. Other income slipped to Rs 43 crore from Rs 236 crore in the year-ago period.
SBI Card said the board of directors at a meeting also approved raising of fund by way of issuance of non-convertible debentures (NCDs) aggregating to Rs 1,500 crore in one or more tranches over a period of time.
On asset quality, the company's gross non-performing assets were at 1.35 percent of gross advances as on June 30, 2020 as against 2.68 percent as on June 30, 2019.
The provision coverage ratio was at 68.25 percent as of June-end against 72 percent a year ago.
Total gross advances (credit card receivables) were Rs 23,330 crore by the end of June quarter, an increase of 9.9 percent from Rs 21,231 crore in the sam period last fiscal.
On capital adequacy, SBI Card said, the company's capital to risk ratio consisting of tier I and tier II capital was 24.4 percent compared to 18.9 percent by June 2019, which was higher than the regulatory requirement.
Stock of SBI Card closed 0.48 percent down at Rs 751.80 apiece on BSE.
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