India’s second largest card issuer, SBI Cards, reported 13.8% growth in net profits to Rs.393 crore for the Jun-20 quarter. The net interest income or NII for the quarter was up 34.6% at Rs.1412 crore. However, SBI Cards reported a 27% fall in the income from fees and services. There was a sharp spike of 18% in impairment expenses to Rs.485 crore.

Despite the sharply higher provision of Rs.485 crore for provisions for COVID losses, the company has managed to show fairly good numbers. Its total credit card receivables stand at Rs.23,330 crore as of June 2020. However, the average spend per card has been falling steeply in the last few months. That could be more due to consumer caution in spending.