SBI Card Q2 profit down 33% to Rs 404 cr

New Delhi: SBI Cards and Payment Services Ltd (SBI Card) on Tuesday reported a 33 per cent fall in net profit to Rs 404 crore for the September quarter on increase in delinquency.

The pure-play credit card company, promoted by the country's largest lender State Bank of India (SBI), had reported a net profit of Rs 603 crore in the previous quarter a year earlier.

However, the total income in the second quarter of the current fiscal year rose 8 per cent to Rs 4,556 crore, from Rs 4,221 crore a year ago, SBI Card said in a regulatory filing.

The interest income grew 20 per cent to Rs 2,290 crore, while income from other sources declined 2 per cent to Rs 2,131 crore.

There was slight deterioration in the company's asset quality with the gross non-performing assets rising to 3.27 per cent of the gross advances as of September, from 2.43 per cent a year earlier.

Net NPAs (bad loans) also rose to 1.19 per cent from 0.89 per cent in the corresponding quarter of the previous year.

Impairment losses and bad debts expenses increased 63 per cent to Rs 1,212 crore in the September quarter as compared to Rs 742 crore a year earlier, it said.

On capital adequacy, the company said the ratio declined to 22.1 per cent from 23.3 per cent at the end of September 2023.