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SBI Cards And Payment Services: Business Traction On Roll; Asset Quality Monitorable, Says Prabhudas Lilladher 

SBI Cards And Payment Services: Business Traction On Roll; Asset Quality Monitorable, Says Prabhudas Lilladher

A woman using her credit  card (Photographer Hollie Adams/Bloomberg)
A woman using her credit card (Photographer Hollie Adams/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

The October 2020 Reserve Bank of India credit card statistics suggests SBI Cards and Payment Services Ltd. maintaining month-on-month cards in-force share at approximately 19% clocking better than industry averages and stood second best to ICICI Bank Ltd. and HDFC Bank Ltd. with-respect-to cards-in-force and spends traction respectively.

As structural demand begins to roll in and shock absorbers (25% capital adequacy ratio, 64% provision coverage ratio, 6%YoY growth expectation in pre-provision operating profit for FY21) in place to tackle credit quality, SBI Card geared to return to normalcy sooner than expected with increased spends (25%YoY growth) and fee income (20%YoY growth) for FY22-23E.

Click on the attachment to read the full report:

Prabhudas Lilladher SBI Cards and Service Event Update.pdf

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