SBI Cards Q3 FY24 PAT grows 8% YoY to Rs 549 cr

The Profit After Tax (PAT) showed an 8% YoY growth, standing at Rs 549 crore in Q3 FY24, compared to Rs 509 crore in the same period last fiscal.

The Return on Assets (ROAA) witnessed a marginal decrease from 4.8% in Q3 FY23 to 4.1% in Q3 FY24. Similarly, the Return on Equity (ROAE) decreased from 22.0% in Q3 FY23 to 19.2% in Q3 FY24. SBI Cards maintained a robust Capital Adequacy Ratio at 18.4%, with Tier 1 capital at 16.3%.

The new accounts volume experienced a decline of 33%, totalling 1,096K in Q3 FY24 compared to 1,634K in Q3 FY23. Despite this, the Cards-in-force exhibited notable growth, reaching 1.85 crore in Q3 FY24, a 16% increase from the previous fiscal quarter.

Spends demonstrated a substantial surge, recording a 41% increase at Rs 96,860 crore in Q3 FY24, up from Rs 68,835 crore in Q3 FY23. Receivables grew by 26%, reaching Rs 48,850 crore in Q3 FY24 compared to Rs 38,626 crore in the same period last fiscal.

SBI Cards maintained a strong market position with a 18.9% market share in Cards-in-Force (compared to 19.7% in FY23) and an 18.3% market share in Spends (compared to 18.2% in FY23), securing the #2 position in both categories within the industry.

The total income witnessed a robust 30% growth, reaching Rs 4,742 crore in Q3 FY24. This was attributed to a 29% increase in interest income and a 34% increase in non-interest income, including fees and commission.

Finance costs increased by 50%, reaching Rs 695 crore in Q3 FY24, compared to Rs 464 crore in Q3 FY23. Total operating costs also increased by 23%, standing at Rs 2,426 crore in Q3 FY24 compared to Rs 1,974 crore in Q3 FY23.

Earnings before credit costs demonstrated strong growth, increasing by 33% to Rs 1,620 crore in Q3 FY24, compared to Rs 1,217 crore in Q3 FY23.

However, impairment on financial instruments increased by 66%, reaching Rs 883 crore in Q3 FY24 compared to Rs 533 crore in the same period last fiscal.

The Gross non-performing assets were at 2.64% of gross advances as of December 31, 2023, as against 2.35% as of March 31, 2023.

Net non-performing assets were at 0.96% as of December 31, 2023, as against 0.87% as of March 31, 2023.

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 December 31, 2023, the company’s CRAR was 18.4% compared to 23.1% as of March 31, 2023.

The Tier I capital in respect of an NBFC-ND-SI, at any point in time, can’t be less than 10%.

The company’s Tier I capital was 16.3% as of December 31, 2023, compared to 20.4% as of March 31, 2023.