Highlights:

The spends level have improved back to pre-covid level in the quarter ended December 2020. The share of online spends has increased to 54% in 9MFY2021 from 44% last year.

The company has continued to increase its market share with share in credit-card spending improving from 17.8% in 9MFY20 to 20.1% in 9MFY21.

The company has added 918 thousand accounts in Q3FY21 with 3.4 lakh accounts added in December 2020 alone

The card-in-force grew by 15% to 11.5 million in Q3FY2021 from 10.0 million in Q3FY2020. The market share in card-in-force improved 18.8% from 18.1% yoy.

The receivables grew by 4% to Rs 25749 crore end December 2020 from Rs 24776 crore end December 2019.

The company has further strengthened its partnerships collaborating with Paytm and BPCL in Q3FY2021.

The operating expenses of the company in Q3FY2021 were impacted due to cash-back and collection expenses. With the festive season falling entirely in Q3FY21 cash back expense were higher compared with festive spread over Q2 and Q3 last year. The company expects collection cost to moderate ahead.

The management overlay provision stands at Rs 1113 crore up from Rs 760 crore end September 2020. The company expects the credit cost to moderate ahead.

The yield on loans for the company has been impacted due to higher restructuring of loans. However, with the decline in restructured loan book ahead the company expects improvement tin yields level.

The RBI restructured loan book has increased to Rs 2344 crore end December 2020 from Rs 2108 crore end September 2020. The addition to restructured book was Rs 613 crore, while Rs 377 crore book was paid or closed.

About 33% of the restructured book was 30-90 days overdue.

The company has created stage 3 provision on restructured loan book.

The Gross NPA ratio stood at 1.61% end December 2020. GNPA ratio on proforma basis has declined to 4.5% from 7.5% a quarter ago mainly driven by write-off Rs 652 crore and resolution of more than Rs 400 crore of loans.

As per the company, the asset quality and acquisition cost is better in the banca channel compared with other channels.