Money & Banking

SBI Card Q1 net profit jumps 74% sequentially despite 2nd Covid wave

Our Bureau New Delhi | Updated on July 23, 2021

On a y-o-y basis, net profit declined 23 per cent in the first quarter   -  KSL

Retail spends up 63% y-o-y at ₹27,000 crore

SBI Card, the country’s largest pure play credit card issuer, on Friday reported a 74 per cent sequential increase in net profit for the first quarter-ended June 30 at ₹305 crore against net profit of ₹175 crore recorded in the previous quarter.

This is a clear pointer that the performance of SBI Cards had not been unduly impacted by the second wave of Covid-19 that struck India since April this year, said corporate observers.

However, on a year-on-year basis, net profit in the first quarter declined 23 per cent when compared to net profit of ₹393 crore in the first quarter last year.

Total income for the quarter under review declined 1 per cent sequentially to ₹2,451 crore from ₹2,468 crore in the previous quarter. However, on a year-on-year basis, total income in Q1FY22 was up 12 per cent against ₹2,196 crore in same quarter last fiscal, a company release said.

Higher retail spends

Retail spends for the quarter under review were up 63 per cent year-on-year at ₹27,000 crore despite lockdown 2.0. In the same quarter last fiscal, retail spends stood at ₹16,608 crore.

Nearly 55 per cent of the retail spends in the first quarter this fiscal were online spends. This was higher than 52 per cent for the first quarter last year.

Corporate spends for the quarter under review stood at ₹6,000 crore, up 149 per cent on a year-on-year basis over ₹2,477 crore.

The cards in force stood at 1.2 crore as of end-June 2021, reflecting 14 per cent increase over same quarter last year. However, the CIF growth sequentially was a modest 2 per cent.

Gross NPA stood at 3.99 per cent in Q1, higher than 1.35 per cent in same quarter last fiscal. It was, however, lower than 4.99 per cent recorded in previous quarter this year.

Published on July 23, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like