SBI Card Q3 profit rises 8% to Rs 549 cr

New Delhi: SBI Cards and Payment Services Ltd has reported an 8 per cent rise in net profit to Rs 549 crore for the third quarter ended December 2023.

The pure-play credit card company, promoted by SBI, had posted a net profit of Rs 509 crore during the corresponding period of the previous financial year.

Total income grew to Rs 4,742 crore during the October-December period from Rs 3,656 crore in the year-ago period, SBI Card said in a regulatory filing.

Total operating cost increased by 23 per cent at Rs 2,426 crore for the third quarter of FY24 from Rs 1,974 crore in the previous fiscal, it said.

Gross non-performing assets (NPA) rose to 2.64 per cent during the quarter under review as against 2.22 per cent a year ago.

Net NPA too increased to 0.96 per cent from 0.80 per cent at the end of the December quarter of the previous financial year.

As a result, impairment losses and bad debt expenses grew to Rs 883 crore from Rs 533 crore in FY23.

As of December 31, 2023, the card company's capital adequacy ratio was 18.4 per cent compared to 23.1 per cent as of March 31, 2023.

As per the capital adequacy norms issued by the RBI, the company’s capital-to-risk ratio consisting of Tier I and Tier II capital should not be less than 15 per cent of its aggregate risk-weighted assets on the balance sheet and of the risk-adjusted value of off-balance sheet items.