SBI Cards reports 24% YoY rise in revenue at Rs 3,140 crore in Q3

The return on average assets (ROAA) stood at 5 per cent during the third quarter against 3.3 per cent in the same period last year.

SBI Cards and Payment Services Ltd on Monday discerned an increase of 84 per cent in net profit at Rs 386 crore for December quarter 2021-22. For the third-quarter ending on December 2021, SBI Cards witnessed an increase of 14 per cent in revenue at Rs 8,285 crore on a year-on-year basis. PAT for the same period boosted by 28 per cent YoY to Rs 1,035 crore.

The pure-play credit card issuer promoted by the country’s largest lender SBI had posted a net profit of Rs 210 crore in the year-ago same quarter. Shares of the public sector bank closed at Rs 817.75 (−32.35) depreciating at 3.81%

The return on average assets (ROAA) stood at 5 per cent during the third quarter against 3.3 per cent in the same period last year.

“The gross non-performing assets were at 2.40% of gross advances as of December 31, 2021, as against 4.51% as of December 31, 2020. Net non-performing assets were at 0.83% as against 1.60% as on December 31, 2020,” the company said in a statement.

The company’s December-quarter total revenue from operations skyrocketed 20 per cent to Rs 2,889 crore versus Rs 2,408 crore a year ago, whereas its total income raised by 24 per cent YoY to Rs 3,140 crore. Among key metrics, SBI Cards commented that new accounts volume came at 1,008k for Q3FY22 up by 10 per cent as compared to 918k for Q3FY21.

Thereafter, total spending rose by 47 per cent to Rs 55,397 crore in Q3FY22. Despite this, there was an increase of 6 per cent in its finance cost during the quarter at Rs 277 crore, while total operating cost was higher by 28 per cent to Rs 1,719 crore.

In the case of asset quality, the company said  “the gross non-performing assets (GNPA) were at 2.40 per cent of gross advances as of December 31, 2021, as against 4.51 per cent as of December 31, 2020. Net non-performing assets (NPA) were at 0.83 per cent against 1.60 per cent as of December 31, 2020. Total gross advances of the company (credit card receivables) at end of December 2021 stood at Rs 29,129 crore as against Rs 25,114 crore as of March 31, 2021.”

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time