SBI Cards Q2 Results: Net Profit Down 33%, Total Income Up 8%

SBI Cards and Payments Services Ltd., an arm of the country's largest state-run lender State Bank of India, logged a 33% decline in its net profit in the quarter ended Sept. 30, as per the financial results declared on Tuesday.

The company's net profit came in at Rs 404 crore during the quarter under review, as compared to Rs 603 crore in the corresponding period of the previous fiscal.

The total income in the September quarter grew to Rs 4,556 crore, marking a jump of 8% from Rs 4,221 crore in the year-ago period.

SBI Card's interest income during second quarter came in at Rs 2,290 crore, up 20% as compared to Rs 1,902 crore in the same period of the last fiscal. The net interest margin, however, slipped to 10.6% from 10.9% in the June quarter.

The company's asset quality slipped in the July-September period, as the gross non-performing assets ratio widened by 22 basis points to 3.27% from 3.06% in the previous quarter. The net NPA ratio increased by 8 basis points to 1.19% from 1.11% in the April-June period.

As of Sept. 30, SBI held more than two-third stake in the company, with its overall shareholding at 68.61%. Mutual funds own 9.89% stake, followed by foreign portfolio investors cumulatively holding 9.18%.