New Delhi: State Bank of India Cards and Payment Services Ltd on Thursday reported 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 earned a net profit of Rs 509 crore during this period. Same period of previous financial year.
The company’s total income rose 30 per cent to Rs 4,742 crore during the October-December period from Rs 3,656 crore in the year-ago period, SBI Cards said in a regulatory filing.
Its total operating costs rose 23 percent to Rs 2,426 crore in Q3FY24 from Rs 1,974 crore in the previous fiscal.
Its gross non-performing assets (NPAs) rose to 2.64 per cent during the quarter under review, from 2.22 per cent a year ago.
Net NPA also increased to 0.96 per cent from 0.80 per cent at the end of December quarter of the last financial year.
As a result, impairment loss and bad debt expense increased from Rs 533 crore to Rs 883 crore in FY23.
As of December 31, 2023, the capital adequacy ratio of the card company stood at 18.4 percent, while as of March 31, 2023, it stood at 23.1 percent.
As per capital adequacy norms issued by reserve Bank of IndiaCapital-to-risk ratio of the company including Tier I and Tier II Capital should not be less than 15 per cent of the risk-adjusted value of its total risk-weighted assets on the balance sheet and off-balance sheet items.