New Delhi, May 8 (PTI) SBI Cards and Payment Services on Friday reported a 66 per cent decline in net profit at Rs 84 crore for the March quarter on additional provisions due to the COVID-19 crisis as well as rise in total expenses.

The credit card company, promoted by country's largest lender SBI, had posted a net profit of Rs 249 crore in the corresponding January-March period of the preceding fiscal year 2018-19.

The company, operated under the brand name SBI Card, registered 23 per cent growth in revenues from operations to Rs 2,433 crore during the fourth quarter of FY20, as against Rs 1,983 crore in same period a year ago, it said in a regulatory filing.

Total income rose by 21 per cent to Rs 2,510 crore from Rs 2,076 crore.

The total expenses of the company jumped 42 per cent to Rs 2,398 crore from Rs 1,691 crore.

For the full year 2019-20, net profit grew by 44 per cent to Rs 1,245 crore from Rs 865 crore in preceding fiscal.

"Excluding COVID-19 impact, PAT for FY20 would have been Rs 1,662 crore, growth of 92 per cent," it said in a release.

Total income in FY20 was up by 34 per cent at Rs 9,752 crore, from Rs 7,287 crore a year earlier.

SBI Card said it registered 28 per cent growth in cards, 27 per cent  growth in spends and 30 per cent growth in receivables during FY20.

On the diversified revenue stream, it said interest income was 52 per cent of revenue from operations. 

The company's gross non performing assets (NPAs) stood at 2 per cent at the end of March 2020. 

The impact of COVID-19 on credit quality is uncertain and additional provisions of Rs 489 crore have been created, it said, adding portfolio analysis has also been undertaken and significant measures have been implemented to mitigate credit risks.

The board of SBI Card approved payment of interim dividend of Re 1 per share (10 per cent ) for the financial year ended March 31, 2020. 

During the quarter ended March 2020, the company had come up with its Initial Public Offering (IPO) and was listed on BSE and NSE.

On the COVID-19 pandemic, SBI Card said globally, countries and businesses are under lockdown and there is a high level of uncertainty about the duration of the lockdown and the time required for things to get normal. 

"The extent to which COVID-19 pandemic will impact the Company's operations and financial results is dependent on the future developments, which are highly uncertain," it added. 

Citing RBI circulars in March and April, it said SBI Card has offered a moratorium on credit card dues to eligible borrowers in accordance with a board-approved policy.

"In this backdrop, the company, based on current estimates, has created an additional management overlay on Expected Credit Loss (ECL) amounting to Rs 48,925.57 lakh during the quarter and year ended March 31, 2020," it said.  

Stock of SBI Card closed 2.15 per cent down at Rs 561.45 on BSE.

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