SBI Card Q3 Results: Net profit rises 8% YoY to Rs 549 crore

SBI Card posted a net profit of Rs 549 crore, in the quarter ended 31st December, up 8% from Rs 509 crore in the same quarter last year due to an increase in bother interest as well as non-interest income. Profit growth was hit due to higher provisions for bad loans.

Interest income increased 29% to Rs 2,082 crore in December 2023 from Rs 1,609 crore a year ago. Non-interest income which includes fees and commission also increased 34% to Rs 2,539 crore.

However, provisions for impairments increased 66% to Rs 883 crore in December 2023 from Rs 533 crore a year earlier. Finance costs also increased 50% to Rs 695 crore from Rs 464 crore a year ago, denting profit growth. The higher provision and finance costs also meant that the company’s net profit decreased 9% compared to the quarter ended September 2023.

SBI Card, the only listed pure play credit card company, recorded a 16% growth in cards in force to Rs. 1.85 crore from Rs. 1.59 crore and a 41% growth in spends to Rs. 96,860 crore, from Rs. 68,835 crore last year.

Their gross non performing assets, improved to 2.64% in December 2023 from 3.07% a year earlier, though hgiher than the 2.35% reported in March 2023.

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