Higher credit costs may impact growth of SBI Cards and Payment Services

SBI Cards and Payment Services, the only listed pure-play card issuer, saw weak growth at 3.5 per cent Y-o-Y in July

The RBI’s moves against unsecured credit have contributed to a slowdown in credit cards. Card issuers have suffered higher delinquencies. Personal loan growth dropped to 6.8 per cent (December 2023-July 2024) versus 20.1 per cent (December 2022-July 2023). For the past six months, credit card receivables growth, which was at 23 per cent year-on-year (Y-o-Y) in Q1FY25, has trailed unsecured loans at 26 per cent Y-o-Y in Q1FY25.

The June quarter (Q1FY25) has been challenging for the industry with new card additions at 0.9 million, amid credit quality risks. SBI Cards and Payment Services, the only listed