SBI Card Q1 results: Net profit flat at Rs 594 cr on higher impairment

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.