The share price of SBI Cards and Payment Services declined over 10 percent on Friday after the company reported poor quarterly numbers with deterioration in the asset quality.
The stock fell as much as 10.6 percent to the day's low of Rs 762.70 per share on the BSE.
The firm posted a 46 percent dip in its net profit at Rs 206 crore in Q2. The credit card company had posted a net profit of Rs 381 crore during the corresponding period of the previous financial year.
The company's bad debts surged 162 percent in the quarter under review to Rs 862 crore versus Rs 329 crore in the year-ago period.
The firm's gross non-performing assets (NPAs) increased 196 bps to 4.3 percent in Q2FY21, compared to 2.33 percent in Q2FY20.
Its interest income, however, increased by 9.7 percent to Rs 1,275 crore, from Rs 1,162 crore a year ago.
Total gross advances (credit and receivables) as of September 2020 rose marginally to Rs 23,978 crore against Rs 23,038 crore a year ago. The firm's total balance sheet stood at Rs 24,313 crore, while its net worth was Rs 5,949 crore in September 2020 quarter.
New accounts volume has increased to 6,88,000 accounts during the September 2020 quarter, compared with 2,88,000 in the year-ago period. The sourcing has been steadily picking up the pace, and in September 2020, the daily average new accounts acquisition was at 98 percent of pre-COVID-19 levels.
(With inputs from PTI)
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