SBI Card Q2 net profit dips 46 pc to Rs 206 crore

SBI Card, promoted by the country's largest lender State Bank of India, said its card-in-force grew 16 per cent to 1.10 crore as of second quarter of 2020-21, from 0.95 crore a year ago.

New Delhi: SBI Card on Thursday reported a 46 per cent dip in its net profit at Rs 206 crore for the second quarter ended September 30. The credit card company had posted a net profit of Rs 381 crore during the corresponding period of the previous financial year. However, its total income during July-September 2020 rose 6 per cent to Rs 2,513 crore as against Rs 2,376 crore in the year-ago period, SBI Card said in a release.

SBI Card, promoted by the country’s largest lender State Bank of India, said its card-in-force grew 16 per cent to 1.10 crore as of second quarter of 2020-21, from 0.95 crore a year ago. The spends were at Rs 29,590 crore, down 10.8 per cent from Rs 33,176 crore.

Its interest income increased 9.7 per cent to Rs 1,275 crore, from Rs 1,162 crore a year ago. The gross non-performing assets stood at 4.29 per cent of the gross advances as on September 30, 2020, against 2.33 per cent by the end of September 2019, it said.

Total gross advances (credit and receivables) as of September 2020 rose marginally to Rs 23,978 crore as against Rs 23,038 crore a year ago. The firm’s total balance sheet stood at Rs 24,313 crore, while its net worth was Rs 5,949 crore in September 2020 quarter.

New accounts volume has increased to 6,88,000 accounts in during the September 2020 quarter, compared with 2,88,000 in the year-ago period. The sourcing has been steadily picking up pace and in the month of September 2020, the daily average new accounts acquisition was at 98 per cent of pre-Covid-19 levels.

Retail spends in the quarter under review increased nearly 50 per cent quarter-on-quarter. Retail spend for the quarter was at 90 per cent of pre-Covid-19 levels, it added. Shares of SBI Card on Thursday closed at Rs 829.45 apiece on the BSE, down 7.30 per cent.