SBI Card net profit grows 32% in third quarter — net interest margin at all-time low

SBI Cards and Payment Services — which issues credit cards under brand SBI Card — on Tuesday reported 32.1 percent surge in net profit at Rs 509.5 crore for the quarter ended December 2022. The net profit for the same quarter last year was Rs 386 crore. The net interest margin (NIM) has declined from 19.2 percent to 11.6 percent in December 2022 quarter, registering an all-time low one. The revenue for the same period was reported at Rs 3,507.1 crore, up 21.4 percent as against Rs 2,889.5 crore year-on-year (YoY).

Over the last few quarter, revolver rate of SBI card has declined from 45 percent as of Q1FY21 to 24 percent as of Q3FY23. During the same period, their yield has declined too, from 22.8 percent to 16.4 percent.

In asset quality, the Gross Non-Performing Assets (GNPA) came in at 2.22 percent vs 2.14 percent. The Net Non-Performing Assets Ratio (NNPA) was reported at 0.8 percent versus 0.78 percent quarter-on-quarter. The credit cost came in at 5.6 percent.