Concall Summary: SBI Cards & Payment Services Ltd Q1FY21

Reading Time: 2 minutes

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:  Concall Summary: JM Financial Ltd Q4FY20

Image Source: Company website

Read more concall summaries here.

Disclaimer: The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the FinMedium or its members. The presentation of material therein does not imply the expression of any opinion whatsoever on the part of the FinMedium concerning the legal status of any company, country, area, or territory or of its authorities. For more info. please read our ToU & Privacy Policy here. If you have any concerns regarding this post, please reach out to our grievance officer Ghanisht Nagpal and drop a mail to

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!

Karan Sharma

Karan Sharma

The Concall Summary Guy | CFA | Investor
Please Share Now :)