SBI CARD Q1FY25 NET PROFIT FLAT AT RS 594 CR AS CREDIT COSTS RISE

Mumbai: SBI Cards and Payments reported a net profit of Rs 594 crore in the quarter ending June 2024, , nearly the same as Rs 593 crore in the previous year.

The company's total income rose 11% over the previous year to Rs 4483 crore, as interest income grew by 24%, offset by a no growth in fee income. Profits were affected by a 45 basis point decrease in margin to 10.9% and an increase in gross credit cost.

During the quarter, the company's asset quality deteriorated. The gross credit cost for Q1 FY25 increased by 17% from the previous quarter and 53% year-on-year to Rs 1,101 crore. Moreover, gross write-offs rose by 12% quarter-on-quarter and 56% year-on-year to Rs 969 crore.

Provisions, the funds reserved for potential loan losses, rose by 63% quarter-on-quarter to Rs 132 crore and by 36% year-on-year. Recoveries saw a slight decline of 2% quarter-on-quarter but increased by 6% year-on-year to Rs 123 crore.

SBI Cards and Payments observed a slight decline in market share for the number of cards, spending, and number of transactions during the quarter.

The net credit cost, which is the gross credit cost minus recoveries, rose by 19% quarter-on-quarter and 62% year-on-year to Rs 978 crore. The gross credit cost percentage and net credit cost percentage also increased significantly quarter-on-quarter and year-on-year.

The gross non-performing assets (GNPA) percentage increased to 3.06%, a rise of 30 basis points quarter-on-quarter and 65 basis points year-on-year. Similarly, the net non-performing assets (NNPA) percentage rose to 1.11%, up 12 basis points quarter-on-quarter and 22 basis points year-on-year.