SBI Cards and Payment Services on Friday reported a net profit flat at ₹594 crore in the first quarter of the current fiscal due to a rise in delinquencies. The SBI-promoted card issuance company (SBI Card) reported a net profit of ₹593 crore in the April-June period of the previous fiscal.
The total income during the quarter rose to ₹4,483 crore against ₹4,046 crore a year ago, the company said in a regulatory filing. Segment-wise, the interest income in the first quarter increased to ₹2,243 crore from ₹1,804 crore a year ago, while income from fees and commission remained almost flat at ₹2,115 crore, it said.
The company’s gross non-performing assets rose to 3.06 per cent of gross advances as of June 30, against 2.41 per cent a year ago. Similarly, net non-performing assets increased to 1.11 per cent from 0.89 per cent in the same quarter of FY24.
As a result, impairment losses and bad debt expenses increased by 53 per cent at ₹1,101 crore in the first quarter compared to ₹719 crore in the year-ago period. The company’s capital adequacy ratio also declined to 20.6 per cent at the end of June 30, 2024, against 22.9 per cent a year ago.