SBI Cards profit grows 14 pc to Rs 393 crore in Q1

Mumbai (Maharashtra) [India], July 20 (ANI): SBI Cards and Payment Services Ltd on Monday reported a profit after tax of Rs 393 crore in the April to June quarter, up 14 per cent from Rs 346 crore in the corresponding period of previous fiscal.
The return on average assets came at 6.3 per cent in Q1 FY21 versus 6.5 per cent while the return on average equity was at 28.3 per cent versus 36.1 per cent in Q1 FY20.
The capital adequacy ratio was 24.4 per cent (Q1 FY20: 18.9 per cent). As per capital adequacy norms, the company's capital to risk ratio consisting of tier one and tier two capital should not be less than 15 per cent of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off-balance sheet items.
However, SBI Cards total income fell to Rs 2,196 crore from Rs 2,304 crore. Though interest income increased by 34.6 per cent to Rs 1,412 crore for Q1 FY21 from Rs 1,049 crore for Q1 FY20, income from fees and services dipped to Rs 668 crore from Rs 916 crore.
Asset quality improved marginally with gross non-performing assets at 1.35 per cent of gross advances as against 2.68 per cent and provision coverage ratio at 68.25 per cent as of June 30 as against 72 per cent last year. (ANI)