• Cards in force cross the 13 Mn+ milestone

• New Accounts cross 1 Mn+ milestone in Q3 FY22 

Kolkata: The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter and 9 months ended December 31, 2021, at their meeting held on Monday, January 24, 2022.

Performance Highlights Q3 FY22 

• Total Revenue increases 24% YoY to ₹3,140 Cr 
• Profit after tax increases 84% YoY to ₹386 Cr 
• ROAA at 5.0% for Q3 FY22 vs. 3.3% for Q3 FY21
• ROAE at 21.2% for Q3 FY22 vs. 13.8% for Q3 FY21
• Capital Adequacy Ratio at 24.2%; Tier 1 at 21.3% 

Key Metrics

• New accounts volume at 1,008k for Q3 FY22 up by 10% as compared to 918k for Q3 FY21.
• Card-in-force grew by 15% to 1.32 Cr as of Q3 FY22 vs 1.15 Cr as of Q3 FY21.
• Total spends grew by 47% to ₹ 55,397 Cr in Q3 FY22 vs ₹ 37,797 Cr in Q3 FY21.
• Market share 9M FY22 (available till Nov’21) – Card-in-force at 19.2% (FY21: 19.1%); Spends at 19.0% (FY21: 19.4%); Transactions at 20.0% (FY21: 19.7%). 
• Receivables grew by 13% to ₹ 29,129 Cr as of Q3 FY22 vs ₹ 25,749 Cr as of Q3 FY21.
• GNPA at 2.40% as of Q3 FY22 vs 4.51%* as of Q3 FY21; NNPA at 0.83% as of Q3 FY22 vs 1.60%* as of Q3 FY21.
• Total RBI RE book including RBI RE 2.0 assets at 2% in Q3 FY22 vs 9% in Q3 FY21.

Profit & Loss Account for the Quarter ended December 31, 2021 

• Total revenue increased by ₹ 600 Cr, or 24% to ₹ 3,140 Cr for Q3 FY22 vs ₹ 2,540 Cr for Q3 FY21, increase is primarily due to higher Income from fees and services in Q3 FY22.
• Finance costs increased by ₹ 16 Cr, or 6% to ₹ 277 Cr for Q3 FY22 from ₹ 261 Cr for Q3 FY21.
• Total Operating cost increased by ₹ 371 Cr, or 28% to ₹ 1,719 Cr for Q3 FY22 from ₹ 1,348 Cr for Q3 FY21, increase is due to higher business volumes & festive campaigns in Q3 FY22.
• Earnings before credit costs increased by ₹ 213 Cr, or 23% to ₹ 1,144 Cr for Q3 FY22 vs ₹ 931 Cr for Q3 FY21.
• Total Management overlay provision at ₹ 162 Cr as on Dec’21. Impairment losses & bad debts expenses for Q3 FY22 at ₹ 625 Cr vs ₹ 648 Cr for Q3 FY21.

• Profit before tax increased by ₹ 236 Cr, or 83% to ₹ 519 Cr for Q3 FY22 vs ₹ 283 Cr for Q3 FY21
• Profit after tax increased by ₹ 176 Cr, or 84% to ₹ 386 Cr for Q3 FY22 vs ₹ 210 Cr for Q3 FY21 

Profit & Loss Account for the 9 months ended December 31, 2021 

    For the 9 months ended December 31, 2021:

• Total revenue increased by ₹ 1,040 Cr, or 14% to ₹ 8,285 Cr for 9M FY22 vs ₹ 7,245 Cr for 9M FY21.
• Finance costs decreased by ₹ 40 Cr, or 5% to ₹ 760 Cr for 9M FY22 from ₹ 800 Cr for 9M FY21.
• Total Operating cost at ₹ 4,268 Cr for 9M FY22 from ₹ 3,361 Cr for 9M FY21, increase is primarily due to higher business volumes.
• Earnings before credit costs increased by ₹ 173 Cr, or 6% to ₹ 3,258 Cr for 9M FY22 from ₹ 3,085 Cr for 9M FY21.
• Impairment losses & bad debts expenses for the period at ₹ 1,865 Cr for 9M FY22 vs ₹ 1,995 Cr for 9M FY21.
• Profit before tax increased by ₹ 304 Cr, or 28% to ₹ 1,393 Cr for 9M FY22 vs ₹1,089 Cr for 9M FY21. 
• Profit after tax increased by ₹ 226 Cr, or 28% to ₹ 1,035 Cr for 9M FY22 vs ₹ 809 Cr for 9M FY21.

Balance Sheet as of December 31, 2021

• Total Balance Sheet size as of December 31, 2021 was ₹ 32,105 Cr as against ₹ 27,006 Cr as of March 31, 2021.
• Total Gross Advances (Credit card receivables) as of December 31, 2021 were ₹ 29,129 Cr, as against ₹ 25,114 Cr as of March 31, 2021. 
• Net worth as of December 31, 2021 was ₹ 7,468 Cr as against ₹ 6,374 Cr as of March 31, 2021.

Asset Quality

The Gross non-performing assets were at 2.40% of gross advances as on December 31, 2021 as against 4.51%* as on December 31, 2020. Net non-performing assets were at 0.83% as against 1.60%* as on December 31, 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 December 31, 2021, Company’s CRAR was 24.2% compared to 23.7% as of December 31, 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 21.3% as of December 31, 2021compared to 19.8% as of December 31, 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 

Rs Cr	Q3 FY21	Q2 FY22	Q3 FY22	YoY	9M FY21	9M FY22	YoY
Interest Income	1,173	1,173	1,273	9%	3,864	3,600	-7%
Others	1,235	1,403	1,616	31%	3,113	4,227	36%
Total Revenue from operations	2,408	2,576	2,889	20%	6,977	7,827	12%
Total Other Income	131	119	250	90%	268	458	71%
Total Income/Revenue	2,540	2,695	3,140	24%	7,245	8,285	14%
Finance costs	261	254	277	6%	800	760	-5%
Operating Costs	1,348	1,383	1,719	28%	3,361	4,268	27%
Earnings before credit costs	931	1,058	1,144	23%	3,085	3,258	6%
Impairment losses & bad debts	648	594	625	-4%	1,995	1,865	-7%
Profit before tax	283	464	519	83%	1,089	1,393	28%
Profit after tax	210	345	386	84%	809	1,035	28%

Summary Balance Sheet  

Rs Cr	Mar’21	Dec’21	Variance %
Assets
Loans (Net)	23,459	27,969	19%
Cash & Bank Balances	720	819	14%
Investments	958	1,236	29%
Other Financial Assets	269	279	3%
Total non-financial Assets	1,600	1,803	13%
Total Assets	27,006	32,105	19%
Liabilities and Equity
Total Equity	6,302	7,396	17%
Borrowings	17,895	21,049	18%
Other financial liabilities	1,717	2,507	46%
Total non-financial liabilities	1,092	1,151	5%
Total liabilities and equity	27,006	32,105	19%

* GNPA/NNPA for previous year on basis of proforma GNPA/NNPA.