SBI Cards and Payment Services Q1 profit down 5% to Rs 593 crore

New Delhi: SBI Cards and Payment Services on Friday reported a 5 per cent drop in net profit to Rs 593 crore in the June quarter due to a rise in delinquencies.

The SBI-promoted card issuance company (SBI Card) had reported a net profit of Rs 627 crore in the April-June period of the previous fiscal.

Its total income during the first quarter of the current fiscal rose to Rs 4,046 crore against Rs 3,263 crore a year ago, SBI Cards said in a regulatory filing.

Segment-wise, the interest income in the first quarter increased to Rs 1,804 crore from Rs 1,387 crore a year ago, while income from fees and commission rose to Rs 1,898 crore compared to Rs 1,538 crore last year.

The company's gross non-performing assets rose to 2.41 per cent of gross advances as of June 30, against 2.24 per cent a year ago.

Similarly, net non-performing assets increased to 0.89 per cent from 0.78 per cent a year ago.

As a result, impairment losses and bad debt expenses increased 60 per cent at Rs 719 crore in the first quarter as compared to Rs 450 crore in the year-ago period.

Capital adequacy ratio of the company stood at 22.9 per cent at the end of June 30 as against 24.7 per cent a year ago.