SBI Cards and Payment Services Ltd IPO – Review, Listing, Update
Update:
Q1 FY 2020-21 Numbers
SBI Cards and Payment Services Limited (SBI Card) reported its first quarter numbers ended June 30, 2020 today after market hours.
Total income stood at INR 2,195.60 Cr in Q1 June 2020, sliding 4.72 per cent from INR 2,304.27 Cr in Q1 June 2019.
Interest income increased 34.6 per cent to INR 1,412 Cr in Q1 June 2020 from INR 1,049 Cr in Q1 June 2019.
The company’s net profit rose 14 per cent to INR 393.29 Cr in Q1 June 2020 compared with INR 345.59 Cr in Q1 June 2019. Net profit was aided by reduction in operating costs and finance costs.
Total tax expense fell 27.80 per cent to INR 134.97 Cr in Q1 June 2020 as against INR 186.94 Cr in Q1 June 2019.
On asset quality front, the company’s gross non-performing assets were at 1.35 per cent of gross advances as on June 30, 2020 as against 2.68 per cent as on June 30, 2019.
SBI Card said the board of directors at a meeting also approved raising of fund by way of issuance of NCDs (non-convertible debentures) aggregating to INR 1,500 Cr in one or more tranches over a period of time.
Read: Finblab Valuepick Stock of the Month – Escorts Limited
16 March 2020
Update:
SBI Cards and Payment Services: Listing
SBI Card, the 2nd largest credit card issuer in India, made a weak debut on bourse on 16 March.
The stock corrected 9.51% from its listing price of INR 755 to settle at INR 683.2 a piece on the Bombay Stock Exchange.
On the NSE, the scrip closed at INR 681.40, down INR 73.60, or 9.75% after hitting an intraday low of INR 656.
SBI Card and payment traded with volumes of 41.67 lakh shares on the BSE and 6,08,92,478 equity shares on the NSE.
SBI Card has 18.1% market share of the Indian credit card market in terms of the number of credit cards outstanding and 17.9% market share of the Indian credit card market in terms of total credit card spends 2019.
27 FEB, 2020
SBI Cards and Payment Services Limited – a subsidiary of the State Bank of India (SBI) and the 2nd largest credit card issuer in India (according to the RBI) – is planning to raise INR 10355 Cr via IPO [500 Cr Fresh Issue + 9855 Cr OFS]
sbi card ipo open date: March 02, 2020, to March 05, 2020
Sbi Card: Company Profile
SBI Card is a subsidiary of SBI, India’s largest commercial bank in terms of deposits, advances and number of branches as of September 30, 2019 (according to the RBI)
The Company started its operations in the year 1998, and since then SBI’s (the parent company) parentage and highly trusted brand have allowed the company to quickly establish a reputation of trust, reliability, and transparency with its cardholders.
According to the Reserve Bank of India, SBI Card has grown its business faster than the Indian credit card market over the past 3 years (both in terms of amounts of credit card spends and numbers of credit cards outstanding)
SBI Card: 2nd Largest Credit Card Issuer in India
SBI Card is the 2nd largest credit card issuer in India, with
- a 17.6 percent and 18.0 percent market share of the Indian credit card market (in terms of the number of credit cards outstanding as of March 31, 2019, and September 30, 2019, respectively), and
- a 17.1 percent and 17.9 percent market share of the Indian credit card market in terms of total credit card spend in fiscal 2019 and in the 6 months ended September 30, 2019, respectively (according to the RBI report)
SBI Card: Business
SBI Card offers a broad credit card portfolio to corporate clients as well as individual cardholders who include (1) lifestyle, (2) rewards, (3) travel and fuel, (4) shopping, (5) banking partnership cards, and corporate cards covering all key cardholder segments in terms of lifestyles and income profiles.
The Company offers 4 primary SBI Card-branded Credit Cards: Simply Save, Simply Click, Prime and Elite, each catering to a varying set of cardholder needs.
Partnership:
SBI Card is the largest co-brand credit card issuer in India (according to the CRISIL Report), and have partnerships with several major players in the fashion, healthcare, and mobility industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, among others.
Network:
As a subsidiary of State Bank of India, SBI Card and Payment Services has access to SBI’s widespread network of 21,961 branches across India. The partnership permits it to market its cards to a massive client base of 44.55 Cr customers.
Headquartered in New Delhi, as of December 31, 2019, SBI Card has a sales/marketing force of 38,677 outsourced sales personnel operating out of 145 Indian cities.
Company Strengths:
- 2nd largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability
- Diversified customer acquisition capabilities
- A diversified portfolio of credit card offerings
- Supported by a solid brand and pre-eminent Promoter
- Advanced risk management and data analytics capabilities
- Modern and scalable technology infrastructure
- The highly experienced and professional management team
Company Promoters:
The promoter of the Company is State Bank of India (SBI)
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
CONCLUSION
Considering company’s valuation, financial parameters, and the sector potential, FinBlab recommends SUBSCRIBE ratings on SBI Cards and Payment Services Ltd IPO
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