SBI Card Q2 results: PAT drops 33% to Rs 404 cr as bad loan provisions rise

SBI Cards and Payment Services reported a 33 per cent drop in second-quarter profit on Tuesday, as bad loans write-offs and provisions rose. 

Profit after tax fell to Rs 404 crore ($48.1 million) for July-September from Rs 603 crore a year earlier. 

Indian lenders have been grappling with elevated bad loans in unsecured segments like credit card. 

SBI Card, backed by India's largest lender State Bank of India, said that write-offs and provisions for bad loans jumped 63 per cent to Rs 1,212 crore for the quarter. 

Its non-performing assets as a percentage of gross advances worsened to 3.27 per cent at the end of September from 2.43 per cent a year earlier. 

 

Cards-in-force, or the sum of all credit cards issued, rose 10 per cent from the year earlier at the end of September. 

Spends by cardholders, or the aggregate amount transacted, grew 3 per cent to Rs 81,893 crore. 

Total revenue from operations rose 8 per cent to Rs 4,421 crore from a year earlier.   

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