Credit Cards - Spends Recovery Can Trigger Earnings Upgrades: ICICI Securities
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ICICI Securities Report
Credit card spends have continued to improve gradually over July-August 2021.
Based on the trend witnessed in September 2021, Q2 FY22E credit card spends could be up ~34%/59% on QoQ/YoY basis.
Assuming market share of 19%, SBI Cards and Payment Services Ltd. spends in Sep-21 could be 49%/33% higher on YoY/QoQ basis.
Increase in spends, growth in receivables and reduction in Reserve Bank of India restructuring book along with controlled credit cost can drive strong growth in H2 FY22 for SBI Cards.
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