SBI Cards up 6% on robust Q1 earnings; PAT rises to Rs393cr, interest income jumps 34.6% yoy

In Q1FY21, the company recorded a net profit of Rs393cr increasing by 13.8% from Rs346cr in the corresponding period of the previous year.

Jul 21, 2020 10:07 IST India Infoline News Service

Credit Cards
SBI Cards and Payment Services witnessed huge buying sentiments on Tuesday after the NBFC registered double-digit growth in its bottom-line and top-line instruments during the first quarter ending June 2020 (Q1FY21) period. On Sensex, SBI Cards stock has advanced by as much as 5.8% with an intraday high of Rs795.50 per piece in early deals.

In Q1FY21, the company recorded a net profit of Rs393cr, increasing by 13.8% from Rs346cr in the corresponding period of the previous year. While interest income jumped by 34.6% to Rs1,412cr in the quarter under review, as against Rs1,049cr a year ago same period.

During the quarter, finance cost dropped by 9% to Rs275cr compared to Rs302cr of Q1FY20. Meanwhile, total operating cost fell by 15.4% to Rs907cr from Rs1,073cr in the same quarter of the previous year.

However, total income decelerated to Rs2,196cr in the latest quarter from Rs2,304cr a year ago similar quarter.

Other key highlights of the financial performance as per the audit report:
  • Card-in-force grew by 20% to 1.06cr vs 0.88cr as of Q1FY20
  • Spends at Rs19,085crore for Q1 FY21 vs Rs30,174cr for Q1FY20
  • Market share – Card-in-force at 18.3%; Spends at 19.6% (as of Apr’20)
  • Receivables grew by 10% to Rs23,330crore vs Rs21,231cr as of Q1FY20
  • Cost to Income ratio improved by 635bps to 47.2% vs 53.6% for Q1FY20
  • GNPA improves by 133bps to 1.35% vs 2.68% for Q1FY20
  • Accounts in moratorium went down to 1.5 lac in June 2020 vs 12.5 lac in May 2020
  • Daily average spends improved to 76.5% of Pre COVID level for June 2020 vs 54.0% for May 2020
  • New accounts acquisition improved from 80K in May 2020 to 181K in June 2020; stands at 57.6% of Pre COVID average daily acquisition
In line with RBI norms, SBI Cards' capital to risk ratio consisting of tier I and tier II capital should not be less than 15% of its aggregate risk-weighted assets on - balance sheet and of risk-adjusted value of off-balance sheet items. As of June 30, 2020, Company’s CRAR was 24.4% compared to 18.9% as of June 30, 2019.

At around 10.41 am, SBI Cards stock was trading at Rs785.10 per piece higher by 4.43% on Sensex. 

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