SBI Card PAT grows 14% to Rs. 393 Crore in Q1 FY21 vs Rs. 364 Crore in Q1 FY20

The Board of Directors of SBI Cards and Payment Services Limited approved the Company's results for the quarter ended June 30, 2020, at their meeting held on Monday, July 20, 2020.

Performance Highlights

- PAT grew by 14% to Rs. 393 Crore for Q1 FY21 vs Rs. 346 Crore for Q1 FY20
- ROAA at 6.3% for Q1 FY21 vs 6.5% for Q1 FY20
- ROAE at 28.3% for Q1 FY21 vs 36.1% for Q1 FY20
- Capital Adequacy Ratio at 24.4% (Q1 FY20 : 18.9%); Tier 1 at 20.1% (Q1 FY20 : 14.3%)

Key Metrics

- Card-in-force grew by 20% to 1.06 Cr vs 0.88 Cr as of Q1 FY20
- Spends at Rs. 19,085 Crore for Q1 FY21 vs Rs. 30,174 Cr for Q1 FY20
- Market share - Card-in-force at 18.3%; Spends at 19.6% (as of Apr'20)
- Receivables grew by 10% to Rs. 23,330 Crore vs Rs. 21,231 Cr as of Q1 FY20
- Cost to Income ratio improved by 635bps to 47.2% vs 53.6% for Q1 FY20
- GNPA improves by 133bps to 1.35% vs 2.68% for Q1 FY20
- Accounts in moratorium went down to 1.5 lac in June 2020 vs 12.5 lac in May 2020
- Daily average spends improved to 76.5% of Pre COVID level for June 2020 vs 54.0% for May 2020
- New accounts acquisition improved from 80K in May 2020 to 181K in June 2020; stands at 57.6% of Pre COVID average daily acquisition

*Pre COVID refers to average of Dec19-Feb20

Profit & Loss Account for the Quarter ended June 30, 2020

- Total income at Rs. 2,196 Cr for Q1 FY21 vs Rs. 2,304 Cr for Q1 FY20. This movement was a result of the following key factors:

- Interest income increased by Rs. 363 Cr, or 34.6% to Rs. 1,412 Cr for Q1 FY21 from Rs. 1,049 Cr for Q1 FY20

- Income from fees and services at Rs. 668 Cr for Q1 FY21 vs Rs. 916 Cr for Q1 FY20.

- Other income at Rs. 43 Cr for Q1 FY21 vs Rs. 236 Cr for Q1 FY20.

- Finance costs decreased by Rs. 27 Cr, or 9.0% to Rs. 275 Cr for Q1 FY21 from Rs. 302 Cr for Q1 FY20.

- Total Operating cost decrease by Rs. 166 Cr, or 15.4% to Rs. 907 Cr for Q1 FY21 from Rs. 1,073 Cr for Q1 FY20.

- Impairment losses & bad debts expenses for the quarter at Rs. 485 Cr vs Rs. 397 Cr for Q1 FY20.

- Profit before tax at Rs. 528 Cr for Q1 FY21 vs Rs. 533 Cr for Q1 FY20.

- Profit after tax increased by Rs. 48 Cr, or 13.8% to Rs. 393 Cr for Q1 FY21 from Rs. 346 Cr for Q1 FY20.

Balance Sheet as of June 30, 2020

- Total Balance Sheet size as of June 30, 2020 was Rs. 24,260 Cr as against Rs. 25,303 Cr as of March 31, 2020.

- Total Gross Advances (Credit card receivables) as of June 30, 2020 were Rs. 23,330 Cr, an increase of 9.9 % from Rs. 21,231 Cr as of June 30, 2019.

- Net worth as of June 30, 2020 was Rs. 5,722 Cr as against Rs. 5,413 Cr as of March 31, 2020, a growth of 5.7%.

Capital Adequacy

As per the capital adequacy norms issued by the RBI, Company's capital to risk ratio consisting of tier I and tier II capital should not be less than 15% of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. As of June 30, 2020, Company's CRAR was 24.4% compared to 18.9% as of June 30, 2019.

The tier I capital in respect of an NBFC-ND-SI, at any point of time, is required to be not be less than 10%. Company's Tier I capital was 20.1% as of June 30, 2020 compared to 14.3% as of June 30, 2019.

Asset Quality

The Gross non-performing assets were at 1.35% of gross advances as on June 30, 2020 as against 2.68% as on June 30, 2019. The Provision Coverage Ratio at 68.25% as of June 30, 2020 as against 72.00% as of June 30, 2019.

Source : Equity Bulls

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