Concall Summary: SBI Cards & Payment Services Ltd Q1FY21

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Business overview

  • PAT at Rs 393 crore vs Rs 346 crore YoY
  • ROAA at 6.3% vs 6.5% YoY
  • ROAE at 28.3% vs 36.1% YoY
  • Capital Adequacy Ratio at 24.4%; Tier 1 at 20.1%
  • Card-in-force at 1.06 crore vs 88 lakh YoY, up 20%
  • Receivables grew by 10% to Rs 23,330 crore
  • Cost to Income ratio improved to 47.2% from 53.6% last year
  • GNPA has improved to 1.35% vs 2.68% YoY


  • Bank of America
  • Prabhudas Lilladher
  • Macquarie
  • HDFC Mutual Fund
  • Enam
  • Aditya Birla Sun Life
  • HSBC
  • Ambit

Concall Highlights

  • Spends are back to more than 75% of the pre-COVID level
  • SBI Card has witnessed a strong rebound in new customer acquisition; recently launched video KYC
  • Company has added 80,000 new accounts in May and 180,000 new accounts in June
  • Market share in terms of Card In Force (CIF) and spend has improved.
  • Market share in terms of CIF has improved to 18.3% from 17.8% YoY; market share in terms of spend has also improved to 19.6% from 17.2% YoY
  • Accounts in moratorium have come down to 1.5 lakh in June 2020 from 12.5 lakh in May 2020
  • Moratorium amount has been reduced to Rs 1,471 crore in June from Rs 7,083 crore in May
  • Field collection activities have largely restored
  • Company has repaid some of the high-cost long-term and short-term borrowings and replaced it with low-cost borrowings, Cost of fund for the quarter was 6.6%
  • Overall finance cost for the quarter was lower due to lower interest cost and lower utilization of credit limit
  • SBI Card has increased its field workforce from 4,200 to over 8,000; tele-workforce has gone up from 1,100 to almost 2,000
  • Company has taken many steps to reduce operating cost and other expenses
  • Revolver percentage has reduced to 45% in June from 49% in April and May; pre-COVID revolver was 38% of total receivables
  • The weightage (in online) of Category 1 (Departmental Stores, Fuel, Health, Utilities, Education) has increased to 88-90% from 75-77% as this segment witnessed 23% growth from pre-COVID level, while Category 3 (Travel agents, Hotels, Airline & Railways) has declined sharply
  • The weightage (in Point of Sales) of Category 1 has increased to 58-60% from 53-55%. Weightage of  Category 3 reduced to 1-1.5% from 4-6%
  • Transaction trend has been shifted from high ticket items to lower ticket high transaction
  • SBI Card ran some program on Amazon and Flipkart for consumer durable goods; 80% customer purchased through EMI
  • The average duration of EMI is 1 year
Also Read on FinMedium:  Dharamsi Morarji Q4FY21 Concall Summary

Image Source: Company website

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Karan Sharma

Karan Sharma

The Concall Summary Guy | CFA | Investor
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