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SBI Cards Payments and Services Limited Q4 FY21- Conference call Highlights

SBI Cards Payments and Services Limited Q4 FY21- Conference call Highlights

Published on 27 May 2021 .Views 84 .Comments 0
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Financial Highlights:

  • The PAT for the Q4 of FY21 stands at 175cr. which is 110% up from Q4 FY20. And PAT for the year FY21 stands at 985cr. which is 21% lower than FY20.
  • The receivables have increased by 4% and stand at 25,114cr.
  • The total income for quarter 4 stands at 2,468 cr. And the income of the year FY21 stands at 9,714cr. which is almost equal to 9,752cr. in FY20.
  • Operating expenses have gone up by 5% and Earnings before credit cost has gone down by 1% in Q4 of FY21.
  • The company is leveraging the lower interest rate environment as the cost of funds fell further, from 6.1% in Q3 FY21 to 5.4%.
  • The GNPA has risen from 4.51% in Q3 to 4.99% in Q4 due to moratorium impact where you can declare NPAs.
  • NNPA stands at 1.15% in Q4 compared to 1.58% in Q3 of FY21.
  • 791,000 accounts were added in Q4 FY21.
  • New-to-credit customers (new acquisitions) rose from 29.2% a year ago to 37.9% in Q4 FY21. The new-to-credit cards declined from 22% to 21.8%. 60% of the new acquisitions were from Tier 3+ cities.
  • Online spends accounted for 52% at end-FY21 vs. 44% at end-FY20

Asset book:

  • The RBI RE books as of March 21 show that assets of- Classification: Stage 1 at 51%; Stage 2 at 13% and Stage 3 at 36%.
  • The company has sold NPAs worth 242cr. with a BV of 80cr. to realize recovery.
  • Return on average assets stands at 2.6% in the Q4 FY21 from 1.3% in the last year same quarter.
  • The potentially high-risk segment portfolio which is GNPA + RBI RE book has gone down from 13.62% in Q3 to 10.06% as of Q4 March 2021.
  • EMI Book had remained flattish on QoQ.
  • Of the new accounts sourced, SBI (the bank) accounted for 54.4% in Q4 FY21, vs. 53.7% a year ago.

Enhanced Product Mix:

  • The bank is focusing on the premium segment
  • The Company has launched an Aurum credit card in Q4FY21 with an annual charge of Rs.10,000.
  • SBI Cards also launched BPCL Octane and IRCTC premium cards in FY21. For the premium segment, co has premium servicing channels.
  • The company has also partnered with Paytm, Google Pay, and Jio Pay for further digital partnerships.
  • For Harnessing Changing Consumer Trends, the company has leveraged data to identify new opportunities and accordingly rolling out timely and relevant offers

Liquidity and coverage:

  • The CAR stands at 24.8% in Q4 FY21 when compared to 22.4% in Q4 FY20.
  • The Q4 FY21 tier 1 ratio stands at 20.9% which has gone up from 17.7% last year same quarter.


  • Complete digitization of the services from new customer adequacy to help in onboarding, servicing, and collection. The government initiative of E-KYC also helped in the online onboarding of new accounts. 
  • Chatbots have addressed around 4.7m credits monthly as of March 21. The number of queries resolved has also gone up by 40% in FY-21.

Market position

  • Credit ratings from CRISIL & ICRA are A1+ and AAA for short and long-term borrowings.
  • The spend rate has come down by 5% in the Q4 FY21 when compared to the previous quarter.
  • The card market share also has gone up from 18.3% in March 2020 to around 19% as of February 2021.
  • While market share in terms of Spends has increased from 17.9% in FY20 to 19.5% for FY21, as of February 2021.
  • But the company has reported a loss of market share of around 3% in last 5 months mainly due to fewer travel spends.
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