 "SBI Card Q3 results: Net profit falls 30% to Rs 383 crore, revenue flat")
India's SBI Cards and Payment Services reported third-quarter profit below expectations on Tuesday, weighed down by higher write-offs.
Profit after tax fell 30 per cent to Rs 383 crore ($44.3 million) for the three months ended Dec. 31, compared to analysts' average expectations of Rs 459 crore, as per data compiled by LSEG.
Indian lenders and card issuers are grappling with asset quality stress, with higher delinquencies being reported in segments such as credit cards and personal loans.
SBI Card, which has also been facing elevated delinquencies over the last few quarters, had also reported a drop in profit in the previous quarter.
The company, backed by State Bank of India, said gross write-offs jumped 89 per cent from last year to Rs 1,354 crore.
SBI Card's net interest margin (NIM) contracted 31 basis points year-on-year to 10.6 per cent.
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Overall spending by cardholders fell 11 per cent to Rs 86,093 crore, while cards-in-force, or the sum of all credit cards issued, rose 10 per cent from last year.
The company's revenue from operations was flat year-on-year at Rs 4,619 crore.
Its gross non-performing assets ratio improved slightly to 3.24 per cent from 3.27 per cent in the previous quarter, but was sharply higher than 2.64 per cent a year ago.
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