SBI Card looks to grow at 40 percent in FY19
Mumbai: Credit card player SBI Card is looking to continue growing at a 40 percent CAGR in the current financial year on rise in card issuance and total spends, a top company official said today.
As of February, the company's cardholder base stood at close to six million. "We have been growing at a CAGR of 40 percent. This growth is far ahead of the industry, which is growing at 20-25 percent.
We would like to continue to grow at a 40 per cent CAGR," said Hardayal Prasad, managing director and chief executive officer, SBI Card. The company has seen increase in its market share on both number of cards issued and spends, according to him.
In terms of card issuance, it's market share stood at 16.7 per cent in FY18, compared with 15 per cent in FY17. Prasad said during October 2017 and February 2018, the company was issuing two lakh new cards per month.
"We would like it to increase to 2.25 lakh cards per month in this financial year," he said. The company witnessed over 75 per cent year-on-year growth in average monthly card spends in FY18. Its market share on card spends has risen to 17 per cent in FY18, from 13 per cent in FY17, according to Prasad.
"On the spend side, the average monthly card spends was at Rs 4,000 crore as of March 2017. It has now touched Rs 7,000 crore per month," he said. In December 2017, the State Bank of India and private equity giant The Carlyle Group had acquired GE Capital's stake in SBI Card. SBI and Carlyle now own 74 per cent and 26 per cent, respectively, in SBI Cards.