SBI Cards and Payment Services Limited , one of India's leading credit card issuers, has announced its financial results for the first quarter, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported a robust 12% year-on-year increase in total revenue, reaching ₹5,035.00 crore compared to ₹4,483.00 crore in the same quarter last year. This growth was primarily driven by:

• Interest income, which rose by 11% to ₹2,493.00 crore
• Fees and commission income, up by 13% to ₹2,191.00 crore

Profit Decline

Despite the revenue growth, SBI Cards experienced a 6% year-on-year decrease in net profit:

• Net profit stood at ₹556.00 crore, down from ₹594.00 crore in the same quarter last year
• However, the profit showed a 4% increase quarter-on-quarter from ₹534.00 crore in the previous quarter

Key Performance Indicators

The company demonstrated growth in several key areas:

• Cards-in-force grew by 10% year-on-year to 2.12 crore
• Spends increased by 21% year-on-year to ₹93,244.00 crore
• Receivables rose by 7% year-on-year to ₹56,607.00 crore

Asset Quality

SBI Cards maintained relatively stable asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio slightly improved to 3.07% from 3.08% quarter-on-quarter
• Net Non-Performing Assets (NNPA) ratio improved to 1.42% from 1.46% quarter-on-quarter

Operational Highlights

• New account volume stood at 8.73 lakh
• The company's market share for cards-in-force increased to 19.1% from 18.5% year-on-year
• Spends market share improved to 16.6% from 15.9% year-on-year

Financial Ratios

Conclusion

The mixed results reflect the competitive landscape of the credit card industry in India, with SBI Cards demonstrating strong top-line growth but facing pressure on profitability. The company's ability to maintain its market position while managing asset quality will be crucial for its performance in the coming quarters.

SBI Cards , a leading credit card issuer in India, has announced significant changes to its offerings and billing processes, affecting various co-branded credit cards and customer payment structures.

Discontinuation of Complimentary Air Accident Insurance

Effective August 11, SBI Card will cease providing complimentary air accident insurance coverage on several of its co-branded credit cards. This change impacts a range of cards offering substantial coverage:

₹1 Crore Coverage Cards:

• UCO Bank SBI Card ELITE
• Central Bank of India SBI Card ELITE
• PSB SBI Card ELITE
• KVB SBI Card ELITE
• KVB SBI Signature Card
• Allahabad Bank SBI Card ELITE

₹50 Lakh Coverage Cards:

• Various PRIME and Platinum variants across multiple partner banks

This move represents a significant shift in the value proposition of these co-branded cards, potentially affecting cardholders who valued this insurance benefit.

Revised Billing Processes

In addition to the insurance changes, SBI Card has implemented new billing processes effective July 15. These revisions alter how the Minimum Amount Due (MAD) is calculated and the order in which payments are adjusted:

New MAD Calculation

The Minimum Amount Due now includes:

• Full GST
• EMIs
• Fees
• Charges
• Finance charges
• Over-limit amounts
• 2% of the remaining unpaid balance

Modified Payment Adjustment Order

SBI Card has revised the sequence for adjusting payments, prioritizing in the following order:

1. GST
2. EMIs
3. Fees
4. Charges
5. Finance charges
6. Balance transfers
7. Retail transactions
8. Cash advances

These changes in billing processes and payment adjustments are likely to impact how customers manage their credit card payments and balances.

The discontinuation of the air accident insurance coverage and the revisions to the billing process represent significant changes in SBI Card's offerings and operations. Cardholders of the affected co-branded cards and SBI Card users, in general, are advised to review these changes and understand how they might impact their credit card usage and benefits.