First thing, As per SEBI rules, promoter holding should be brought down to 75% after few years of listing. Since SBI and CA rover are promoter with more than 79% stake now, they have to bring it down. Even during IPO issue, it was CA who sold most of their shares to raise money.
Second, These Venture capitals and PE firms are not here to be the permanent promoters of any companies. They want to make huge profits and exit after some years for most of the companies.
Lastly, Nowadays I can see in many VP threads, there is much noise even if the promoter sold 0.5% or 1% also people posting and asking if itâs red flag or negative, always remember that, As long as the company Fundamentals remain intact and nothing changed, there is no need to worry. Even if the promoter holding is zero in quality companies like ITC, IEX which are regulated and professionally managed, there is no need to worry about sbicard which is countryâs 2nd largest credit card company and backed by countryâs biggest lender SBI.
SBI Cards & Payment Services has tied up with Fabindia to launch an exclusive co-branded contactless credit card - Fabindia SBI Card.The card is designed with curated benefits and privileges to offer a rewarding shopping experience to its premium customers. The card comes in two variants - Fabindia SBI Card SELECT and Fabindia SBI Card.
SBI Cards is planning to enter the super-premium cards space with something called Aurum, a black card with a gold streak in the middle. Might just be invite-only, given some of the data points I've seen so far. (Don't @ me) pic.twitter.com/UaVF4SaGh5
They are also launching a super premium card called Aurum. Its a black metal card targeted at people with 15lac+ spends on the card. The website is : https://aurumcreditcard.com/ . They are marketing this aggressively, had sent a free gift (https://sytara.in/) before I received a call to upgrade to this new card.
I am having a basic doubt here. With more UPI transaction, can the usage come down. Credit cards make most of their money only from the defaulters. How long guys can borrow at 36% and survive. Further, the trend in Microfinance is also increasing. What is USP of credit cards for guys to buy them
I have had this debate with others too! 50 day interest free money, reward points, perks. Not everyone borrows from credit cards. 0-interest EMI offers from credit cards (I know debit cards have also started providing the same), but it is also an aspirational thing to own a credit card. Co-branded cards (I use SBIâs BPCL card) also have a huge runway because of the perks it offers.
If I were a salaried individual and have good credit score, I could get a credit card with good credit limit. The credit stays in the card until the expiry of the card which obviously is a few years. There could be emergencies and instances where I will be in need of money which I many not have any in my bank account, and I could not ask anybody, or if I am in another city where I know nobody, I can use this card in times like these.
Not to mention the need of credit card when purchasing from websites which are located outside India, which do not accept Paypal transactions.
I could even increase the limit. The onus is on the bank which issues the card, I donât need to have money in the account at the time of using the card. Who wouldnât want one?
A credit card is like a reserve, it may never be used but it is a unique source of borrowing, if a specific need arises. They sure have their place, at least for the time being.
UPI in its current form is not a threat to Credit cards. Since banks cannot earn any money from transaction charges and the current form of UPI is debit.
But when UPI is matured enough to have a credit card like model and transaction charges are enabled, then all banks and customers can easily move to UPI. This will not affect other credit card providers. But SBI Cards is at the mercy of SBI for routing this business to SBI Cards instead of having it in its own book
Reserve Bank of India (RBI) data showed that overall credit card outstanding remained stable at âš1.1 lakh crore. September credit card spends surpassed âš80,000 crore, crossing the monthly peak spends seen in March of âš72,300 crore.
Credit cards are one of the most profitable business, say for any bank which has high interest rates.
A key metric in credit cards is per card spend and what may surprise everyone is that HDFC Bank is not the market leader here. It is Karur Vysya Bank, which leads per card spend in India.
In fact, Karur Vysya Bankâs per car spend is over 2.17 times the industry average and more than 1.83 times of the market leader HDFC Bank.
From Karurâs point of view, it is the most profitable business.
Private lender IndusInd Bank also derives significant business out of its credit card segment, followed by the latest kid on the block in the banking sector i.e. IDFC First Bank!
Which BNPL your talking about? Isnât it violation of RBI rules that says credit can not be cleared using other credit. I have used lazypay and it doesnât allow clearing dues from credit card citing RBI restrictions. Also CC charges heavily on transaction and assuming that Pay later companies makes very meagre or nil profit in payment services, it canât be sustainable for long term to accept credit card repayment. See how wallet (Paytm, mobikwik) levy heavy convenience charge on loading money by CCs
