SBI Card Faces Decline As Q3 Profit After Tax Falls By 9% YoY

In Q3 FY24, SBI Cards and Payment Services witnessed a 7.78 per cent increase in net profit and a substantial 29.69 per cent growth in total income compared to the same quarter in the previous fiscal year. However, there was an 8.87 per cent quarter-on-quarter decline in profit before tax, reaching Rs 737.59 crore in the December quarter.

Interest income rose by 29 per cent to Rs 2,082 crore in Q3 FY24, while non-interest income, including fees and commission, saw a 34 per cent surge to Rs 2,539 crore. Finance costs experienced a 50 per cent year-on-year increase, reaching Rs 695 crore during the period, and total operating costs stood at Rs 2,426 crore in Q3 FY24, reflecting a 23 per cent year-on-year growth.

Impairment on financial instruments increased by 66 per cent to Rs 883 crore in Q3 FY24. The return on average assets (ROAA) and return on average equity (ROAE) for the quarter ended 31 December 2023, were reported at 4.1 per cent and 19.2 per cent, respectively.

On a nine-month basis, the net profit of the NBFC increased by 5.02 per cent to Rs 1745.49 crore, with a significant 25.42 per cent rise in total income in 9M FY24 over the corresponding period in FY23.

Concerning asset quality, gross non-performing assets stood at 2.64 per cent of gross advances as of 31 December 2023, compared to 2.35 per cent as of 31 March 2023. Net non-performing assets were at 0.96 per cent as of 31 December 2023, up from 0.87 per cent as of 31 March 2023.

As of 31 December 2023, the company's CRAR was reported at 18.4 per cent, compared to 23.1 per cent as of 31 March 2023. Tier I capital stood at 16.3 per cent as of 31 December 2023, compared to 20.4 per cent as of 31 March 2023.

The total balance sheet size as of 31 December 2023, reached Rs 55,576 crore, compared to Rs 45,546 crore as of 31 March 2023. Gross advances (credit card receivables) were at Rs 48,850 crore as of 31 December 2023, compared to Rs 40,722 crore as of 31 March 2023.

Net worth as of 31 December 2023, amounted to Rs 11,724 crore, up from Rs 9,902 crore as of 31 March 2023.

SBI Cards and Payment Services, a non-banking financial company, provides a comprehensive credit card portfolio to individual and corporate clients. The brand boasts a substantial base of over 18.5 million cards in force as of Q3 FY24.