SBI Cards and Payment Services reported 52% fall in net profit to Rs 210 crore on a 1% decline in net total income to Rs 2,540 crore in Q3 FY21 over Q3 FY20.
Profit before tax in Q3 FY21 stood at Rs 283 crore, down by 51% from Rs 583 crore in Q3 FY20. Current tax expense during the quarter increased by 21.2% year-on-year (YoY) to Rs 190.17 crore.
Card-in-force grew by 15% to 1.15 crore as of Q3FY21 compared with 1 crore as of Q3FY20. Spends grew by 8% at Rs 37,797 crore for Q3FY21 versus Rs 35,135 crore for Q3FY20. Receivables grew by 4% to Rs 25,749 crore as of Q3FY21 versus Rs 24,776 crore as of Q3 FY20. New accounts volume has increased by 8% to 918,000 accounts in Q3FY21 compared to 848K in Q3FY20.
The company's market share Q3FY21 (available till November): card-in-force at 18.8% as against 18.1% in Q3FY20. Spends were at 20.2% for Q3 FY21 from 17.8% in Q3FY20.
Earnings before credit costs shrunk by 3% to Rs 931 crore in the third quarter from Rs 959 crore in the same period last year. Impairment losses and bad debts jumped 72% to Rs 648 crore in Q3 December 2020 from Rs 376 crore in Q3 December 2019. Cost to Income ratio was at 59.1% in Q3 FY21 as compared to 49.3% in Q2 FY21 and 56.7% in Q3 FY20.
On the asset quality side, the ratio of gross NPAs to gross advances stood at 1.6% as on 31 December 2020 as against 4.3% as on 30 September 2020 and 2.5% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.6% as on 31 December 2020 as against 1.5% as on 30 September 2020 and 0.8% as on 31 December 2019.
SBI Card had offered moratorium on credit card dues to eligible borrowers till 31 August 2020 in accordance with board approved policy. Thereafter, the company has allowed one time resolution to eligible customers by offering them an option of converting credit card dues into EMIs of up-to 24 months. As of 31 December 2020, outstanding balance of such accounts was Rs 2,343.81 crore. The company has classified such balance under Stage 2 assets and holds adequate provision against such assets.
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The Supreme Court of India, in a public interest litigation vide an interim order dated 03 September 2020, has directed banks that accounts which were not declared NPA till 31 August 2020 shall not be declared as NPA till further orders. If the company had classified such borrower accounts as NPA [Stage 3] after 31 August 2020, the company's proforma Gross NPA and proforma Net NPA ratio would have been 4.51 % and 1.58%, respectively.
Total balance sheet size as of 31 December 2020 was Rs 27,277 crore as against Rs 26,000 crore as of 31 December 2019.
Total gross advances (credit card receivables) as of 31 December 2020 were Rs 25,749 crore, as against Rs 24,776 crore as of 31 December 2019.
Net worth as of 31 December 2020 was Rs 6,186 crore as against Rs 4,829 crore as of 31 December 2019.
As of December 31, 2020, the company's capital-to-risk weighted assets ratio (CRAR) was 23.7% compared to 19.2% as of 31 December 2019.
SBI Cards and Payment Services is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel & fuel and banking partnerships cards along with corporate cards covering all major cardholders' segments in terms of income profile and lifestyle.
The scrip jumped 4.14% to Rs 1019.65. It traded in the range of 979.15 and 1024.90 so far during the day.
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