SBI Cards beats Covid disruptions, reports 44% jump in FY20 profit

New Delhi, May 8 (SocialNews.XYZ) SBI Cards, the credit card arm of the country's top public lender SBI, has reported a 44 per cent jump in net profit during 2019-20 fiscal to Rs 1,245 crore despite the negative impact of Covid-19 pandemic on its operations.

Without factoring in the disruptions resulting from the spread of the virus, SBI Cards profit would have soared even higher at 1,662 crore or a 92 per cent jump over the profit figures of previous year, the company said in a statement.

In FY20, SBI Cards and Payments Services Ltd reported total income of Rs 9,752.29 crore, a 33.8 per cent growth from Rs 7,286.85 crore total income reported in FY19.

SBI Cards also performed better on coverage of its credit cards than several of its peers. Cards grew by 28 per cent to 1.05 crore, while spends on cards also increased 27 per cent to Rs 130,915 crore.

Receivables also performed better ensuring overall good operations by 30 per cent to Rs 24,141 crore. Even the gross non-performing assets saw a decline to 2.01 per cent of gross advances as on March 31, 2020 as against 2.44 per cent as on March 31, 2019.

During the FY20, the company got listed on BSE and NSE. The shareholders diluted 14 per cent of their holding and the company raised fresh equity capital of Rs 499 crore to utilise for augmenting its capital base to meet future capital requirements. Impairment losses & bad debts expenses for the year increased by Rs 792.51 crore, or 69.0 per cent, from Rs 1,147.74 crore for FY19 to Rs 1,940.25 crore for FY20.

Source: IANS