SBI Cards Sees 66% Drop In Q4 Profit; Asset Quality Improves

On Friday, SBI Cards and Payment Services posted a 66.41 percent fall in net profit at Rs 83.54 crore for the March-ended quarter from Rs 248.74 crore a year ago. The decline mainly points to a 138 percent jump in impairment losses and bad debt in the period to Rs 838.18 crore.

Total expenditure rose 41.79 percent to Rs 2,398.31 crore.

"The Covid-19 global pandemic has given rise to unprecedented challenges in the economic situation. Considering the possible effects from the pandemic relating to Covid-19, the company has performed sensitivity analysis and based on current estimates has created specific provision of Rs 489 crore," SBI Card said in a release.

The company's asset quality improved as gross non-performing assets stood at 2.01 percent of gross advances on 31 March 2020 against 2.44 percent last year.

Total balance sheet size grew 25.60 percent to Rs 25,302.80 crore in the financial year 2019-20 against Rs 20,146.17 crore in the previous year. Net worth rose 47.90 percent to Rs 5412.73 crore during the same period.

Total credit card receivables increased 30.30 percent to Rs 24,140.61 crore in the financial year 2019-20.