SBI cards made a very aggressive move with this launch of cash back credit card. ICICI earned so many customers due to its Amazon pay cash back card now it’s the time for the SBI to show its might and acquire large number of customers to its fold with this 5% cash back. And they priced it perfectly. The annula fee from second year is 999. With this they will get huge fee income and there is only 1% cash back in offline payments which will give boost to mdr fee.
And there might not be any competition as it’s more targeted towards middle class and the class between upper and middle class with the cap of 10000 per billing cycle. The incumbent large credit card players like hdfc and ICICI might not launch a competitive card as ICICI has Amazon pay and hdfc has its own good card portfolio the ground is open for the SBI card to make a splash and issue millions of new cards.
Disclosure: holding.
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