SBI Cards & Payment Services Limited

CC uses either VISA, Master or Rupay as payment gateway, why the money will be made to flow through yet another gateway (UPI)?

here are the results :

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Result came after the market hours.

Investor Presentation :

Press release :


Fact - SBI Cards & Payment Services is the 2nd Largest Purely Credit Card Issuer in India with 1.18 crore cards in force enjoying a healthy market share of 19.1% as of March 31, 2021

when most NBFCs are valued at less than 5 Price to Book, Bajaj Finance and SBI are at 11. Isnt it that expectations are too much priced in this stock and few bad quarters can hammer the stock? The last quarter results was decent but the valuations are such that its priced to perfection.
Any contra views?


No I dont there is any restriction on making payments through credit cards. Today I paid both my Simpl and Lazy pay dues through my axis credit card.

In the case if Simpl, for transactions from 1st to 15th, the bill is generated on 15th and payment is to be made by 20th. Same way for next 15 days with due date on 5th of next month, beyond which there is a fine of Rs.10 per day. Works the same with Lazypay also.

So, assuming one makes a transaction on 1st of a month, he can get a credit period of 20 days plus 45 days on making payment through credit card. I have been using both Simpl and Lazypay for a very long now and have rarely defaulted.

Today I was surprised to receive an SMS from Lazypay asking to claim their Lazycard offering a credit limit upto 2 lakh. The card is a tieup with SBM Bank (India), which I found has received its banking license recently. It claims to have acceptance at almost all merchants (specially I could find e-commerce). So clearly, some sort of disruption is on the way


I think it as also good for credit cards. If credit card tie ups with paylater kind services then credit card 45, 50 days interest free period will come down to 15 to 30 days.
It could be more beneficial to credit cards rather than harm.

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Firstly we also need to understand how most investor value these credit card company as they are much less risk with a great benifit in NPA also due to very high interest rate that make them have higher price to book.

Just for example if we even see many developed market like usa and Europe there we see company like America express pure credit card play and much more slow growth opportunities and traditional a more constant compounding buisness still trades at 5-6 time there book.

This is very common with most pure credit card company to have such high pb ratio so sbi card having 1.8x to 2x of it saturated market pb ratio sound quite interesting to me.

While if we see other gold loan company in more mature and low growth market they tend to hover around 1-3 only so how these will play out is anyone’s guess.

Not all nbfc are same that need to taken in account and how they play out is also a bigger question.

As sbi cards have 2-3 growth driver

  1. capital consumption increase specially in mid to high income earner over a period of time.
  2. greater penetration over time that can make there base easily 5-10x very easily.
  3. New offering and move toward more cheaper loans + offering more cards that can make same customer have more then one card at a time and with more partnership can also open other income sources.

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this impacts debit cards but similarly other credit mechanism exists for immediate loan/credit facility provided against customer profile without issuing credit cards…so can SBI CARDS be impacted ?

The above article has some reassuring details for credit card usage and amount of each transaction.



Mr. Nalin Negi, CFO Resigns

Edit: Good results + CFO resigning + finance co. makes me extremely nervous.
Any red flags?

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Headwinds for Credit card industry owing to RBI regulations.

After Apple, I expect Google play, Netflix and other tech giants to follow the same.

Disc : completely exited after Dec-21 results.


Interesting move by RBI

Don’t quote me on this but I think it might be Little bad and good for company as if we see with rupay card if you do UPI atleast with Bob rupay credit card the transaction charges are zero and from both side so this might affect there direct constant source of revenue but may get them more credit dispersal capacity and also other ways they can charge it.

It may affect there net interest margin overtime but can be good in long run specially if emi etc can be there.



This news could be good as this will restrict the unseen credit given by BNPL and the checks that they do while credit card companies play in a more restricted space.
Finally, rbi is taking action to restrict them so they don’t issue customers in long run.

Update:- this video will help to understand in a better way that what rbi have stated.