Sequential improvement in Q1 suggests investors can swipe for SBI Cards

Unless there is a strong third Covid wave, expect key financial parameters to improve

SBI Cards and Payment Services delivered strong results in Q1FY22. The company is a good indicator of consumer sentiment due to its wide geographical footprint and aggressive open market sourcing. It has the second-highest market share of around 19 per cent in the credit card market.

SBI Cards reported a PAT of Rs 305 crore, down 23 per cent year-on-year from Q1FY21, and up 74 per cent QoQ versus Q4FY21 when it had PAT of Rs 175 crore. The Return on Assets (RoA) was at 4.5 per cent while the Return on Equity (RoE) was close to 19 per cent.