SBI Cards - Business Growth Recovering Well; Return Ratios Robust: Motilal Oswal
A customer uses a credit card to make a contact-less payment. (Photographer: Simon Dawson/Bloomberg)

SBI Cards - Business Growth Recovering Well; Return Ratios Robust: Motilal Oswal

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.

Motilal Oswal Report

We recently initiated coverage on SBI Cards and Payments Services Ltd., highlighting the structural growth story and the unique play on rising retail credit that has been offered by the company.

While the credit card base/spends has increased at 22%/31% compound annual growth rate over the past five years, credit card penetration levels remain much lower at 3.8% versus most other countries.

Credit card penetration to internal customers for the industry stands ~7% (much lower for SBI Cards at 3.8%), providing ample cross-sell opportunities.

A highly under-penetrated market, coupled with a higher thrust on digital payments, rising e-commerce, and efforts towards making the economy a cashless one provides long-term structural growth opportunities.

Click on the attachment to read the full report:

Motilal Oswal SBI Card Company Update.pdf

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