SBI Cards & Payment Services touches 52-week high; business reaches pre-COVID level

The pure-play credit card company, SBI Cards & Payment Services is trading over 4 per cent on Friday as the company's business has reached its pre-COVID levels.

The company’s card-in-force increased by 15 per cent to 1.15 crore in December 2020 quarter as compared to 1 crore in the corresponding quarter of the previous year, suggesting a revival in the business. Spends for the current quarter increased by 8 per cent to Rs 37,797 crore, as compared to Rs 35,135 crore in Q3FY20.

The company also showed an improvement in its market share of cards, which increased to 18.8 per cent in Q3FY21 along with spends that increased to 20.2 per cent as compared to 18.1 per cent and 17.8 per cent, respectively in Q3FY20.

Although, there have been some improvements in economic activities in the current quarter, the continued slowdown has impacted new credit card originations, use of credit cards as well as the efficiency in collection.

The company also announced its December 2020 quarter results. The profit after tax (PAT) witnessed a decline of 52 per cent YoY to Rs 209.65 crore, led by higher provisions. It recorded a PAT of Rs 434.66 crore in the corresponding quarter, last year. The provisions for the current quarter rose 46 per cent on QoQ basis to Rs 1,113 crore.

On the asset quality front, the company’s net non-performing assets (NPAs) improved to 0.56 per cent as of Q3FY21 as compared to 0.83 per cent of Q3FY20. Its capital adequacy ratio stood at 23.7 per cent for the quarter as against 19.2 per cent in Q3FY20.

At around 11.54 am on Friday, its share was trading 4.21 per cent higher at Rs 1,020.4 on BSE. It recorded an intraday high of Rs 1,024.9, creating its new 52-week high.