Shares of SBI Card rise nearly 5% as net profit jumps 84% in Dec quarter

Shares of SBI Cards and Payment Services on Tuesday gained nearly 5 per cent after the firm reported an 84 per cent jump in net profit for December quarter 2021.

The company's stock zoomed 4.90 per cent to Rs 854 on the BSE.

At the NSE, it jumped 4.90 per cent to Rs 854.85.

SBI Cards and Payment Services on Monday reported an 84 per cent jump in net profit at Rs 386 crore for December quarter on the back of healthy card spends, fall in bad loans and higher income from other sources.

The pure-play credit card issuer, promoted by the country's largest lender SBI, had posted a net profit of Rs 210 crore in the year-ago same quarter.

Total revenues of the company rose 24 per cent to Rs 3,140 crore during the quarter under review, as against Rs 2,540 crore in the same period of 2020-21, SBI Card said in a release.

The increase in income was primarily due to higher income from fees and services during the quarter, SBI Card said.

On the other key metrics, the company witnessed 10 per cent growth in new accounts volume at 10,08,000, as against 9,18,000 in the year-ago quarter. Card-in-force grew 15 per cent to 1.32 crore and total spends surged 47 per cent to Rs 55,397 crore.

The company's asset quality improved as gross non-performing assets (NPAs) fell to 2.40 per cent of gross credit, as against 4.51 per cent as of the third quarter of 2020-21.