SBI Cards Market Cap Surpasses Rs 1 Trillion Mark For The First Time

On Friday, the market-capitalisation (m-cap) of SBI Cards and Payment Services surpassed the Rs 1 trillion (Rs 1 lakh crore) mark for the first time ever after shares of the company rose to a new high of Rs 1,095. According to BSE's data, the SBI arm for credit cards stood at 34th position in the overall m-cap ranking on Friday, moving above Tata Motors, Shree Cement, and JSW Steel.

Shares of SBI Card are gaining in an otherwise weak market, on bets that fast adoption of digitisation, accelerated by the COVID-19 outbreak. Most of the analysts have been bullish on the credit card business of SBI Card, citing strong revenue growth led by rising and underpenetrated pay card business. It also is in demand for being the only listed credit card company in India, having no peer business to make comparisons with.

At the end of December 2020, SBI Cards had 11.5 million active cards in use, up 9.5% from the previous year. The company reported a revenue of Rs 2,540 crore for the December-ended quarter against Rs 2,563 crore in the same period a year ago. However, net profit, fell by 52% to Rs 210 crore as compared to the net profit of Rs 435 crore in the same period last year.