Intraday Spotlight: Shares of SBI Cards and Payment Services rise 5 per cent

In Q3, the company clocked a 24 per cent YoY growth in its topline.

Shares of SBI Cards and Payment Services, one of two state-run credit card issuing companies in the country was among the top gainers on the S&P BSE 500 intraday today. The stock was trading up by 5 per cent in the afternoon trading session on Wednesday and was among the top gainers on the BSE 500.  

Last month, the company had reported its quarterly numbers as of December 2021. The company has clocked a 24 per cent year-on-year surge in its revenue, primarily due to higher income from fees and services in Q3FY22. Its revenue surged to Rs 3,140 crore. The asset quality of the credit card issuer improved as gross non-performing assets fell to 2.4 per cent of gross profit. The bottom line rose over 85 per cent YoY to Rs 386 crore. 

India is a market with low credit-card penetration of three to four per cent. Banks also focus on the so-called prime or super-prime customers, making a large pool of Indians ineligible for these credit lines, which NBFCs and fintech startups are looking to tap. 

SBI Cards is one of two NBFCs—SBI Card and BoB card, both in the state-run space that issue credit cards. According to media reports, the Reserve Bank of India (RBI) is likely to allow some non-banking financial companies to issue credit cards but the nod will come with stringent conditions so that only those with a strong balance sheet get into the risky business.  

On Wednesday, the stock of SBI Cards and Payment Services closed at Rs 863.55, up by 5.38 per cent or Rs 44.10 per share. The 52-week high of the scrip is recorded at Rs 1,164.65 and the 52-week low at Rs 781.25 on the BSE.