New Delhi: SBI Cards and Payment Services (SBI Card) sees more than 50 percent of its transactions via online payments such as groceries, utility bills, insurance premiums and hopes the trend will continue to rise as the purchase of points of sale is not yet up, the CEO said. said.
Keep an eye on the recent coronavirus Sami Card, CEO and CEO of SBI Card, Rama Mohan Rao Amara, has again found revival in the country in some important places.
However, online payments are a trend that is going to rise further, he added.
‘In particular, within SBI Card, more than 53 percent of spending now comes from online payments, which used to be about 44 percent earlier. “Almost 9 percentage points improve, especially in the categories such as groceries, clothing, paid bill, insurance premium, online tuition,” Amara said in an interview with PTI.
He added that the company has suddenly seen an increase in spending on these types of categories. “We believe (it) will stay online, because as soon as people get used to the convenience of it, they will continue with it. So, COVID or non-COVID, it will not affect it. However, he said that the points of sale (PoS) did not open so well, because when the footfall increases, there will also be a pick-up point.
The pure-play card business is also seeing an emerging trend to secure more customers from non-metro locations. It also relies on the large customer base of its parent company SBI to expand further.
Maybe until 5-6 years ago, tiger I spots contributed greatly to the growth in the credit card industry.
‘But if you look at our recent performance, about 58 percent of our incremental purchases actually come from non-level cities that are in Category II, III and IV.
“It contributes more to our new credit card acquisitions, which is that we have a refund from our parent bank (SBI) customer base,” he added.
In the third quarter of the fiscal year to the end of March 2021, the card grew by 15% to 1.15 million, compared to one year in the same year. Expenditure was 8 percent higher than 37,797 million compared to 35,135 million.
And the volume of new accounts increased by 8 percent in the third quarter of 2020-21 to 9.18,000 accounts, compared to 8.48,000 in the third quarter of 2019-20.
According to the pre-approved program of the company, in which it looks at the customer base of the parent bank and the cardable population, it helped SBI Card tremendously to add the new card base, Amara added.
“It started around 2017, it has now reached a good volume. It contributes well, but if you look at our disclosures, more than 50 percent comes from our banking channel, which you actually call an SBI source, ‘Rao added.
He added that especially the first and second quarters of FY21, when locations in the open market were closed and purchases were limited, the company’s banking channel helped him to pick up. ‘We were able to come back in almost 10,000 accounts a day, it was the best interest rate in the best of the best times. We were therefore able to return to the trend in the third quarter. “And, mainly, this growth comes from cities II, -III and IV,” he added.
Amara also said the company will continue to work with its parent bank.
‘If you look at the customer base of our parent bank, it’s more than 400 million. We barely examined the base of about 20-22 percent. So there are still a lot of runways left, ”said Rao.
However, he said the company will always look forward to making new commitments and recently also joined hands with Jio Payments.
Amara said the company had an impact on the front, but that he expressed confidence that it would be back on track once things normalized.
In the nine months ended December 2021, SBI Card showed a flat growth in its revenue at 7 245 million. And the net profit decreased by 30 percent to 809 million in the period April-December from 2020 to 21.
Rao said the company has alreadyCOVID-19 matters in the third quarter and expects it to achieve proper numbers for the total fiscal.
The company is expected to declare its financial results for the fourth quarter of 2020-21 by the end of this month.
Source: Telangana Today