Shares of SBI Cards
and Payments rose 4 per cent and hit a new high of Rs 892 on the BSE on Wednesday in an otherwise weak market after the company said it has kick-started festive season offers in line with the changing shopping trends and customers will be offered discounts as well as cashback across a host of brands.
The State Bank of India (SBI)-promoted company's stock traded at the highest level since its listing on March 16, 2020. It surpassed its previous high of Rs 867.50, hit on September 30, 2020.
is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel & fuel and banking partnerships cards along with corporate cards covering all major cardholders' segments in terms of income profile and lifestyle. Presently, the brand has a wide customer base of over 10 million.
“With over 1,000 offers across 2,000 cities, SBI Card endeavors to bring customers a rewarding shopping experience on their festive season purchases”, the company said in a release.
Offers are available nationally across marquee brands such as Amazon, Brand Factory, Croma, Caratlane, Fabindia, FirstCry, Grofers, Homecentre, Samsung Mobile, Lloyds, More Hypermarket, More Supermarket, Pantaloons and Tata Cliq. These strategic partnerships will enable the customers to derive benefits across all the relevant shopping categories. Offers include attractive cash backs as well as instant discounts ranging upto 10 per cent it said. CLICK HERE FOR RELEASE
As per Reserve Bank of India (RBI) data, monthly credit card spends have reverted back to pre-Covid levels with banks reporting Rs 50,311 crore worth of credit card spends in August 2020 against RS 50,574 crore in March 2020. However, this was still lower than Rs 60,011 crore in February 2020. ICICI Securities expect the upcoming festive season to boost credit card spends.
Meanwhile, CRISIL pegs the growth in credit card spends in India at 20 per cent CAGR between FY19-24E on rising government’s support for a cashless economy, improvement in payment infrastructure and an increase in organized retail penetration including e-commerce. That apart, SBI Cards’ parent’s distribution network is another key strength.
Anand Rathi initiated coverage on the stock with a ‘Buy’ rating with a target price of Rs 1,021, while Prabhudas Lilladher has a target price of Rs 974 – higher by 21 per cent and 16 per cent from the current market price on the BSE, respectively. CLICK HERE FOR FULL REPORT