Sbi card is in a sweet spot as of now. With the rise in cost of living people tend to use credit cards more often and there is good chance of it being a revolving credit. And as for sbi card it has the access to the mighty sbi branch network who are very strong and especially in tier 2 and 3 cities where private banks doesn’t have any presence. The market is valuing it at par with Bajaj finance and rightly so. With the ROA of 5 and ROE of 23 it has the capability to double the profits every 3 years provided they adhere to the good credit under writing.
Now the advantage for sbi credit card is the support of its parent sbi. Sbi is pushing all its subsidiaries growth very hard be it sbi life general mutual fund and sbi card. And they have their presence across the length and breadth of India which is nearly impossible for any other bank. And from the stable of sbi it’s the sbi card business which has the Highest return metrics and has the NIM of 15 to 17%. It can do the heavy lifting for the bottom line of sbi consolidated profits. After the covid related stress issues now it’s time for the sbi card to show what they are capable off.
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