Hyderabad : The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter and half year ended September 30, 2021, at their meeting held on Thursday, October 28, 2021.
Performance Highlights Q2 FY22
- Total Revenue increased by 7% YoY to ₹2,695 Cr for Q2 FY22
- Profit after tax increased by 67% YoY to ₹345 Cr for Q2 FY22
- ROAA at 4.9% for Q2 FY22 vs. 3.4% for Q2 FY21
- ROAE at 20.1% for Q2 FY22 vs. 14.1% for Q2 FY21
- Capital Adequacy Ratio at 25.0%; Tier 1 at 21.8%
Key Metrics
- New accounts volume at 953k for Q2 FY22 up by 39% as compared to 688k for Q2 FY21
- Card-in-force grew by 14% to 1.26 Cr as of Q2 FY22 vs 1.10 Cr as of Q2 FY21
- Retail spends grew by 41% to ₹ 35,070 Cr in Q2 FY22 vs ₹ 24,863 Cr in Q2 FY21
- Corporate Spends grew by 80% to ₹ 8,491 Cr in Q2 FY22 vs ₹ 4,728 Cr in Q2 FY21
- Market share H1 FY22 (available till Aug’21) – Card-in-force at 19.4% (FY21: 19.1%); Spends at 19.0% (FY21: 19.4%); Transactions at 20.0% (FY21: 19.7%)
- Receivables grew by 12% to ₹ 26,741 Cr as of Q2 FY22 vs ₹ 23,978 Cr as of Q2 FY21
- GNPA at 3.36% as of Q2 FY22 vs 7.46%* as of Q2 FY21; NNPA at 0.91% as of Q2 FY22 vs 2.70%* as of Q2 FY21.
- New RBI RE added at ₹ 105 Cr in Q2 FY22 as compared to ₹ 257 Cr in Q1 FY22. Total RBI RE book including RBI RE 2.0 assets at 4% in Q2 FY22 vs 9% in Q2 FY21.
Profit & Loss Account for the Quarter ended September 30, 2021
- Total revenue increased by ₹ 185 Cr, or 7% to ₹ 2,695 Cr for Q2 FY22 vs ₹ 2,510 Cr for Q2 FY21, increase is primarily due to higher Income from fees and services in Q2 FY22.
- Finance costs decreased by ₹ 10 Cr, or 4% to ₹ 254 Cr for Q2 FY22 from ₹ 264 Cr for Q2 FY21.
- Total Operating cost increased by ₹ 277 Cr, or 25% to ₹ 1,383 Cr for Q2 FY22 from ₹ 1,106 Cr for Q2 FY21, increase is due to higher business volumes in Q2 FY22.
- Earnings before credit costs at ₹ 1,058 Cr for Q2 FY22 vs ₹ 1,140 Cr for Q2 FY21.
- Total Management overlay provision at ₹ 231 Cr as on Sep’21. Impairment losses & bad debts expenses for Q2 FY22 at ₹ 594 Cr vs ₹ 862 Cr for Q2 FY21.
- Profit before tax increased by ₹ 186 Cr, or 67% to ₹ 464 Cr for Q2 FY22 vs ₹ 278 Cr for Q2 FY21
- Profit after tax increased by ₹ 139 Cr, or 67% to ₹ 345 Cr for Q2 FY22 vs ₹ 206 Cr for Q2 FY21
Profit & Loss Account for the half year ended September 30, 2021
- For the half year ended September 30, 2021 total revenue increased by ₹ 441 Cr, or 9% to ₹ 5,146 Cr for H1 FY22 vs ₹ 4,706 Cr for H1 FY21. Finance costs decreased by ₹ 56 Cr, or 10% to ₹ 483 Cr for H1 FY22 from ₹ 539 Cr for H1 FY21. Total Operating cost at ₹ 2,550 Cr for H1 FY22 from ₹ 2,013 Cr for H1 FY21, increase is primarily due to higher business volumes. Pre-provision earnings at ₹ 2,114 Cr for H1 FY22 from ₹ 2,154 Cr for H1 FY21. Impairment losses & bad debts expenses for the period at ₹ 1,239 Cr for H1 FY22 vs ₹ 1,347 Cr for H1 FY21. Resultant Profit before tax at ₹ 874 Cr for H1 FY22 vs ₹806 Cr for H1 FY21. Profit after tax increased by ₹ 50 Cr, or 8% to ₹ 650 Cr for H1 FY22 vs ₹ 599 Cr for H1 FY21.
Balance Sheet as of September 30, 2021
- Total Balance Sheet size as of September 30, 2021 was ₹ 29,167 Cr as against ₹ 27,013 Cr as of March 31, 2021.
- Total Gross Advances (Credit card receivables) as of September 30, 2021 were ₹ 26,741 Cr, as against ₹ 25,114 Cr as of March 31, 2021.
- Net worth as of September 30, 2021 was ₹ 7,059 Cr as against ₹ 6,374 Cr as of March 31, 2021.
Asset Quality
The Gross non-performing assets were at 3.36% of gross advances as on September 30, 2021 as against 7.46%* as on September 30, 2020. Net non-performing assets were at 0.91% as against 2.70%* as on September 30, 2020.
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 September 30, 2021, Company’s CRAR was 25.0% compared to 25.3% as of September 30, 2020.
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 21.8.% as of September 30, 2021 compared to 21.0% as of September 30, 2020.
Rating
CRISIL Long Term – AAA/Stable
CRISIL Short Term – A1+
ICRA Long Term – AAA/Stable
ICRA Short Term – A1+
Summary Profit and Loss Statement
Summary Profit and Loss Statement
| Rs Cr | Q2 FY21 | Q1 FY22 | Q2 FY22 | YoY | H1 FY21 | H1 FY22 | YoY |
| Interest Income | 1,277 | 1,153 | 1,173 | -8.1% | 2,691 | 2,327 | -13.5% |
| Others | 1,138 | 1,208 | 1,403 | 23.3% | 1,878 | 2,612 | 39.1% |
| Total Revenue from operations | 2,415 | 2,362 | 2,576 | 6.7% | 4,569 | 4,938 | 8.1% |
| Total Other Income | 95 | 89 | 119 | 25.6% | 137 | 208 | 52.5% |
| Total Income/Revenue | 2,510 | 2,451 | 2,695 | 7.4% | 4,706 | 5,146 | 9.4% |
| Finance costs | 264 | 229 | 254 | -3.8% | 539 | 483 | -10.3% |
| Operating Costs | 1,106 | 1,166 | 1,383 | 25.1% | 2,013 | 2,550 | 26.6% |
| Earnings before credit costs | 1,140 | 1,056 | 1,058 | -7.2% | 2,154 | 2,114 | -1.8% |
| Impairment losses & bad debts | 862 | 645 | 594 | -31.1% | 1,347 | 1,239 | -8.0% |
| Profit before tax | 278 | 410 | 464 | 66.8% | 806 | 874 | 8.4% |
| Profit after tax | 206 | 305 | 345 | 67.3% | 599 | 650 | 8.4% |
Summary Balance Sheet
| Rs Cr | Mar’21 | Sep’21 | Variance % | Sep’20 |
| Assets | ||||
| Loans (Net) | 23,459 | 25,394 | 8% | 21,925 |
| Cash & Bank Balances | 720 | 727 | 1% | 690 |
| Investments | 958 | 958 | 0% | 1 |
| Other Financial Assets | 276 | 490 | 77% | 267 |
| Total non-financial Assets | 1,600 | 1,598 | 0% | 1,435 |
| Total Assets | 27,013 | 29,167 | 8% | 24,318 |
| Liabilities and Equity | ||||
| Total Equity | 6,302 | 6,987 | 11% | 5,877 |
| Borrowings | 17,895 | 19,023 | 6% | 15,743 |
| Other financial liabilities | 1,636 | 1,278 | -22% | 988 |
| Total non-financial liabilities | 1,180 | 1,879 | 59% | 1,710 |
| Total liabilities and equity | 27,013 | 29,167 | 8% | 24,318 |
* GNPA/NNPA for previous year on basis of proforma GNPA/NNPA.