SBI Card Q1 Profit Flat: Higher Impairment Hits Earnings
Jul 26, 2024 20:08
SBI Cards and Payment Services reported a flat net profit of Rs 594 crore in Q1 FY25, impacted by rising delinquencies and higher impairment losses. Gross NPA rose to 3.06% from 2.41% a year ago.
New Delhi, Jul 26 (PTI) SBI Cards and Payment Services on Friday reported a net profit flat at Rs 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 Rs 593 crore in the April-June period of the previous fiscal.
The total income during the quarter rose to Rs 4,483 crore against Rs 4,046 crore a year ago, the company said in a regulatory filing.
Segment-wise, the interest income in the first quarter increased to Rs 2,243 crore from Rs 1,804 crore a year ago, while income from fees and commission remained almost flat at Rs 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 Rs 1,101 crore in the first quarter compared to Rs 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.
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