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Credit card major SBI Cards and Payment Services Ltd on Tuesday said it closed Q3 of FY23 with a higher net profit of Rs 509.46 crore.

In a regulatory filing, the company said for the quarter ended December 31, 2022, it had earned a total operational revenue of Rs 3,507.12 crore (Q3FY22 Rs 2,889.46 crore) and a net profit of Rs 509.46 crore (Rs 386.77 crore).

However the after tax profit for the period under review is lower than the Rs 525.64 crore profit the company had posted for Q2 of this fiscal.

The company's gross non performing asset (GNPA) and net NPA as of December 31, 2022 is 2.22 per cent and 0.80 per cent, respectively, as against 2.40 per cent and 0.83 per cent, respectively, as of December 31, 2021 and 2.22 per cent and 0.78 per cent, respectively, as of March 31, 2022.

As of December 31, 2022, the company holds total expected credit loss on loan balances of about Rs 1,272.88 crore (Rs 1,160.66 crore as of December 31, 2021) which includes a management overlay of about Rs 6.59 crore (vs about Rs 162.34 crore of December 31, 2021), the company said.

SBI Cards interest cost went up by 68 per cent year-on-year to Rs 464 crore and its operational cost went up by 15 per cent year-on-year to Rs 1,974 crore.

The net interest margin (NIM) declined to 11.6 per cent for the period under review compared to the previous quarter figure of 12.3 per cent.