Company Overview
Introduction
SBI Cards is the second-largest credit card issuer in India, with a 17.6% and 18.1% market share of the Indian credit card market in terms of the number of credit cards outstanding as of March 31, 2019 and November 30, 2019, respectively, and a 17.1% and 17.9% market share of the Indian credit card market in terms of total credit card spends in fiscal 2019 and in the eight months ended November 30, 2019, respectively, according to the RBI. They offer an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.
Financial Performance of SBI Cards & Payment Services Ltd
Competitive Strengths
Concentrated Market – Top 4 players accounts for two-thirds of credit card spends
There are a total of 74 players offering credit cards in India, with the top three private banks (HDFC Bank, Axis Bank and ICICI Bank) and SBI Card, as the leading pure-play credit card issuer, dominating the credit card business with a total of approximately 72.0% market share by number of outstanding credit cards as of March 2019 and approximately 66.0% market share by credit card spends in fiscal year 2019.
Strategies
SBI Cards strive to become the market leader in India’s highly underpenetrated credit card space, and they believe that they are uniquely positioned to capitalize on India’s growth opportunities by leveraging our competitive strengths and pursuing the following strategies:
Lead Managers
Why to invest in SBI Cards & Payment Services Ltd IPO?
According to the RBI, SBI has grown its business faster than the Indian credit card market over the past three years both in terms of numbers of credit cards outstanding and amounts of credit card spends, and they believe that they achieved this by leveraging their strengths and capitalizing on India’s favourable economic and demographic changes, including its strong macroeconomic performance, rising affluence, increasing consumer demand, rapid urbanization and the growth of e-commerce platforms.
Additionally, the focus on technology and data analytics gives them an edge over the competition. They have a diversified customer acquisition network that enables them to engage prospective customers across multiple channels. And SBI is the leading player in open market customer acquisition in India according to the CRISIL Report. They have established a proven track record of consistently generating profits over the past three fiscal years.
SBI’s Competitive Strengths are as follows:
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