SBI Cards & Payment Services Limited

SBI card enables Rupay credit card on UPI.


Have been tracking sbi cards lately I feel credit on UPI will make it very convenient and will make credit cards useful for even small value transactions, I think the revolves book will reduce as there is some customers who are mindful about proper use of credit cards, UPI can make credit cards mainstream but I do not think they will earn on it MDR revenue, I already have two SBI credit cards, I have many other bank’s credit card but I feel SBI card is the best really like their investment in technology, recently with their SBI cashback card they have reduced MCC on which 5% cashback was applicable, also I like SBI’s customer onboarding journey, they have a good process, currently with the devaluation of majority of Axis bank credit cards and reduction of airport lounge access I am seeing players avoiding cash burn, so in all I feel revolver should reduce, credit card new users as well as spending rise, fee income should increase to in proportion, valuation is much more favourable now, India in my opinion should be very high growth also if they are able to maintain GNPA it should be a very good stock in my opinion have taken entry.

Any anti- thesis and risks someone can point.
I am a credit card user of SBI and many other banks can provide any feedback for comparision purposes if required, Happy to help.


Again had a look at the carts, the stock is making lower highs and lower lows which is a very bad trend. It looks like the stock is a stage 4 stock. Will exit all my holdings in this counter tomorrow.

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Any thing fundamentally you find wrong about this stock?


Nope, long term this is a macro story. As per my opinion if you are looking at investing perspective this is a good company to hold in your portfolio. I have exited looking at chart structure. Although i am learning and there is still a lot to learn for me to share a definitive call.
Some good points for the stock:

  • Good brand
  • Good management
  • Credit use is increasing in the market
  • Only point to watch out for is rise in NPA but that would happen if the condition of the economy goes bad. Also, i think their grip is better in Tier 2 and tier 3 cities where folks are not savvy regarding credit use.

But all in all good company to hold for long term as long you keep on tracking their numbers.

in their recent concall their credit cost increased to 6.8% more than management expected and it was mostly from the cards sourced in 2019, they have guided for credit cost in the range of 5.8-6.2%, also have reduced credit limits which is very rarely done by any bank’s card. I find that as a positive and also I personally hold 2 SBI Credit cards their app is one of the best and is customer centric, it is the only company that allows a credit balance refund to be credited in the bank through the app itself, I also have used their credit on UPI feature which I feel is a gamechanger as people generally use UPI for everything and credit cards are mostly used for big ticket purchases it is very convenient.

Management as guided 1 million new card acquisition this FY and also I am very bullish as I track its monthly spends and also its market share, it is gaining market share, also some BNPL are shutting down due to some regulations and also many new age credit cards such as cards with tie up from SBM bank are losing customers due to funding winter, so cost of acquiring customers and excessive rewards shall be mitigated which is really nice, SBI cards cost of funding has also reached its peak and it shall reduce from FY25 onwards if RBI starts lowering rates.

I believe credit cards is an inherently very sticky business and even foreign banks find it difficult to acquire customers in India as their target audience is mainly tier 1 cities with already good credit scores Is This the End of Credit Card Business in India for Foreign Banks? | TechnoFino - #1 Community Of Credit Card & Banking Experts