SBI Card Faces Profit Decline Amid Rising Defaults

SBI Card reported a 19% drop in profit for the March quarter to Rs 534 crore due to rising defaults, despite an increase in total and interest income. Gross non-performing assets rose to 3.08%, and impairment losses hit Rs 1,245 crore. Full-year profit also declined by 20%.

SBI Card reported a significant 19% decline in its profit for the March quarter, with earnings dropping to Rs 534 crore, primarily due to an uptick in defaults.

The pure-play credit card company, closely allied with SBI, had achieved a profit of Rs 662 crore during the corresponding quarter of the previous fiscal year. Notably, the company observed an increase in total income, which rose to Rs 4,832 crore compared to Rs 4,475 crore in the same timeframe last year.

Despite the rise in total and interest income, which improved to Rs 2,415 crore, the gross non-performing assets escalated to 3.08% from the previous year's 2.76%. Consequently, impairment losses and bad debts surged to Rs 1,245 crore, resulting in a full fiscal year profit decline of 20% to Rs 1,916 crore.

(With inputs from agencies.)