Share market update: SBI Cards shares rally 7% today; here’s why
SBI Cards and Payment Services is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients
Shares of SBI Cards and Payment Services jumped 6.99% to Rs 969.20 after US banking major Citigroup, a leading foreign bank in India, reportedly said that it will shutter retail banking operations in 13 countries that includes India.
Citigroup said it will exit its consumer franchises in 13 countries that includes India, Australia, Bahrain, China, Indonesia, Korea, Malaysia, Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam. The move is a part of Citigroup’s global strategy to focus on institutional business.
Citibank reportedly has 2.2 million credit card accounts with around 6% market share of retail credit card spends in India.
A foreign brokerage reportedly said that Citi’s exit from India will be an opportunity for players in India to either acquire the existing stock of clients and/ or gain market share in segments like credit cards, deposits and retail loans.
Private banks and credit card companies like SBI Cards can be key beneficiaries of market share gains in the credit card segment, it added.
SBI Cards and Payment Services 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.
The company reported a 52% fall in net profit to Rs 210 crore on a 1% decline in net total income to Rs 2,540 crore in Q3 FY21 over Q3 FY20.
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