InvestorQ : Please share your views on SBI cards IPO
Radhika Arya made post

Please share your views on SBI cards IPO

Answer
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Sanjiv Bhasin answered.
7 months ago


It’s an excellent opportunity for long term investment as insurance credit cards and AMC are businesses for the future. In the US, Visa and Mastercard have seen superior returns in last year. Globally market cap of credit card issuers is close to new highs. In the Indian context, SBI is the oldest and most superior PSU bank as safe as RBI.


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Roshni Hegde answered.
7 months ago


SBI, state-owned bank is around 22 years old, SBI Cards is a subsidiary of SBI is also known as the second-largest credit card issuer in India. The total market share of this subsidiary company is nearly 17.6% and 18.1% 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.

The positive point of the company is the track record of growing profit since past three fiscal years. The profit has advanced from ₹373cr in FY17 to ₹863cr in FY19 at a CAGR of 52.1%. The ascending ROAA has seen upward trend from 4.0% in FY17 to 4.8% in FY19.

Thus, to conclude with the above main points investors can “Subscribe” to the issue for both short term and long-term perspectives.