SBI Cards & Payment Services conducted a conference call on 27 October 2023
to discuss its financial results for the quarter ended September 2023. Abhijit Chakravorty,
MD&CEO addressed the call:
Highlights:
The
digital economy is a playing major role in the economy with 58% jump in the
digital payments. The government expects the share of digital payments to
increase to 20% of GDP by FY2026.
The
credit card outstanding has increased by 30% to Rs 2.18 lakh crore and
September 2023
The
credit cards base has increased to 93 million end August 2023. The credit card
spends has touched an all time high of Rs 1.48 lakh crore in August 2023.
The company
has added 5.3 lakh cards on net basis, while the total new accounts addition was
at 11.4 lakh. The company has witnessed reduction in the attrition in the customers
over a year ago, but rose on sequential basis due to KYC related issues.
The
overall cards base of the company has increased 21% to 1.79 crore end September
2023.
The
market share in cards stands at 19.2% end September 2023.
The cards
spends of the company has increased 27% to Rs 79000 crore in Q2FY2024. The
company has also exhibited an improvement in the spends per card to Rs 1.8 lakh
from Rs 1.71 lakh.
The retail
card spends has increased 21% to Rs 61446 crore in Q2FY2024. The corporate spends
also increased 55% to Rs 17718 crore.
The
company has partnership with all major cards networks.
POS sales
as well as online sales has exhibited strong across categories.
Outstanding
per credit card has remained steady at Rs 25000.
The
cost of fund was stable at 7.1%, while the margins have eased marginally by 10 BPS
in Q2.
The
credit cost was lower at 6.7% on account of the actions taken at portfolio
level and better collection efficiency.
The company
expects cost of funds to be slightly higher for next two quarters.
Rupay
card account for 10% of the card portfolio and the company is the market
leader in the Rupay credit cards.
The
company expects credit cost to remain elevated in Q3FY2024. The credit cost is
expected to remain above 6%.
The
revolver balance stands steady at 24 - 25% for last 4-5 quarters.
Regulator
has been guiding the lenders take care of the risk management in the unsecured loan
segments.
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