SBI Cards Share Price Gains Over 2% as Market Share Rises in May

Market Performance

SBI Cards and Payment Services saw a solid increase in its share price on Tuesday, June 24, driven by strong credit card spending data for May.

• SBI Card's share price was trading at ₹976.9 around 10:05 a.m., marking a 2.2% rise on the NSE.
• The price rally followed the company's announcement of improved monthly and yearly metrics in its credit card segment.

Main News: Growth in Spending and Market Share

SBI Cards showed notable gains in both market share and customer activity for May:

• Spend Market Share climbed to 17.1% in May, up from 16% in April.
• Monthly spending increased by 10.1%, outperforming the industry's growth rate of 3%.
• On a year-on-year basis, SBI Card's spending increased by 23%, while the industry as a whole recorded a 15% rise.

This data reflects SBI Cards' strong positioning and increased consumer usage in the credit card market.

Company Performance Metrics

Spending Trends

• Daily Spends rose 5.5% in May, improving from 4.8% in April.
• This suggests a recovery in corporate usage, especially after last year's regulatory impact.

Credit Card Market Share

• The credit card market share stood at 19% in May.
• This marked a 50-basis-point increase year-over-year, although it remained flat compared to April.

Cards-in-Force

• SBI Cards reported a 10% year-on-year growth in cards-in-force.
• The industry growth was slightly lower at 8%.
• Every month, card additions grew by 0.6%, marginally below the industry average of 0.7%.

Summary

SBI Card's share price surged over 2% on June 24, reflecting investor confidence in the company's expanding footprint in the credit card market. Key highlights include:

• Market share growth from 16% to 17.1%
• Spending growth outpacing the overall industry
• Credit card base growing faster than peers

With robust year-on-year performance in spending and card additions, SBI Cards continues to strengthen its position in India's growing digital payments ecosystem.