SBI Cards and Payment Services Ltd (SBI Card) has reported a two-fold rise in net profit to Rs 627 crore for the quarter ended June 2022, as both discretionary and non-discretionary spends including travel improved and delinquencies fell.

The SBI-promoted card issuance company had reported a net profit of Rs 305 crore in the year-ago quarter.

Total income during the quarter rose to Rs 3,263 crore as SBI Card spread its footprints to tier-3 and beyond locations. This stood at Rs 2,451 crore a year ago.

The interest income of the company during the quarter increased to Rs 1,387 crore from Rs 1,153 crore a year ago. Income from fees and commission rose to Rs 1,538 crore compared to Rs1,099 crore.

The asset quality of the company also improved with the gross non-performing assets (NPAs) declining by 2.24% of gross advances as of 30 June 2022. In the year-ago quarter, this stood at 3.91%. 

Net NPA fell to 0.78% from 0.88% a year ago.

During the quarter, SBI's card-in-force increased by 19% to 1.43 crore compared to 1.20 crore as of Q1 FY22. Spends rose 79% to Rs 59,671 crore for Q1 FY23 versus Rs 33,260 crore a year ago.

In the June quarter, the company posted impairment losses and bad debt expenses of Rs 450 crore versus Rs 645 crore for Q1 FY22 and Rs 393 crore for Q4FY22.

During the quarter, SBI Card's total balance sheet stood at Rs 36,859 crore compared to Rs 34,648 crore as of 31 March 2022.

The credit card receivables (total gross advances) was at Rs 33,215 crore as of 30 June 2022, as against Rs 31,281 crore as of March 31, 2022. Net worth was at Rs 8,445 crore compared to Rs 7,824 crore.