SBI Cards and Payment Services posted a net profit of ₹509 crore for the third quarter of FY23, up 32% from the previous year, driven by strong growth in total revenue and cards in force.
The company’s total revenue rose 16% year-on-year to Rs 3,656 crore.
Total revenue was Rs 3,656 crore in the reporting quarter compared to Rs 3,140 crore in the same period a year earlier, led by an increase in interest income to Rs 1,609 crore from Rs 1,273 crore.
Impairment losses and bad debt expense decreased by 15 per cent to ₹533 crore for the quarter, which also helped the bottom line.
Outstanding cards for the company grew 21 percent to Rs 1.6 crore at the end of December. New account volume increased 62 percent to 16.34 lakh accounts.
Consequently, the card company’s accounts receivable grew by 33 per cent YoY to ₹38,626 crore. Card spending was 24 per cent higher at ₹68,835 crore.
Total gross advances including credit cards and accounts receivable increased by 23.5% over the nine-month period to ₹38,626 crore as at December 31.
As of November 2022, the company’s market share in terms of cards in force was 19.3%, up from 18.7% at the end of FY22. The market share in spending with cards stood at 18.0%, below 19.2% as of March 2022.
The SBI card raw NPA ratio was 2.22%, better than 2.40% a year ago. The net NPA ratio also improved to 0.80 percent from 0.83 percent.
The company’s capital adequacy ratio was 23.3 percent as of December 31, of which Tier I capital was 20.6 percent. The company’s net worth stood at ₹9,530 crore.
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