
Credit cards rising faster : Long term Trend

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Q2 FY21 results fo SBI cards are out and does not look great on few fronts although long term story seems intact as of now
Few snaps from SBI recent investor presentation where we can see the lagging part from company as compared to previous year FY20
SBI Cards : Declining portfolio growth, SBI Cards : Increasing NPA , SBI Cards : Declining PAT



Looks better to wait for right entry price : NOT a RECOMMENDATION
Looking at HDFC Bank Q4 confcall transcript analyses. One key point was discretionary spending on cards is effecting total spending. This do not bode well for companies like SBI cards where not only spending goes down but it will hit the profit as well due to late payment and increase of NPA in certain cases.

Also Read : SWOT analysis : SBI Cards
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This is in series of posts where you can find the SWOT of a listed company along with factors to watch out for in coming quarters.
SWOT means
S – Strength of a company
W- Weakness of a company
O- Opportunities available for a company
T – Threats for a company
Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
Also Read – SWOT- Parag Milk Foods
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Also Read – SWOT- Dhanuka
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.