SBI Cards and Payment Services (SBI Card) have been seeing more than 50% of their online payment services like food, government debt, insurance money, and hope for price increases as the price point remains high, the manager said. large company.
Finally looking at the resurgence of coronavirus in the world of other key areas, SBI Card MD and CEO Rama Mohan Rao Amara said it would be too early to say whether it would affect human trafficking.
However, online payments are a growing trend, he added.
“Especially within the SBI Card, now, more than 53 percent of the expenditure actually comes from online payments that were almost 44 percent before. About 9 percent of development points especially in areas such as food, clothing, aid bills., Insurance premiums. , online education, “Amara told PTI in an interview.
He added that with these types of categories, the company suddenly noticed an increase in online spending. “We believe it will stay online because once people get used to its luxury, they will continue with this. Therefore, COVID or not COVID, will not have an impact on that.”
However, he said point of sale (PoS) sites have not yet opened that, as also as the foot rises, there will also be downloads there.
The pure card company also sees a growing trend to protect more customers in non-municipal areas. The bank is also a major customer company of its parent company SBI to expand further.
Perhaps until 5-6 years ago, tier-I sites had a major impact on the growth of the credit card industry.
“However, if you look at the way we work recently, about 58 percent of the extra revenue actually comes from non-category II, III and IV cities.
“This contributes greatly to the availability of new credit cards, which means we have sheep for our bank customers (SBI),” he added.
The performance of corporate cards increased by 15 percent to 1.15 crore in the third quarter of March 2021, compared to one in the same year. Costs ranged from 8 percent to ₹ 37,797 crore from, 35,135 crore.
Also, the volume of new accounts increased by 8 percent to 9,18,000 accounts in the third quarter of 2020-21, compared to 8,48,000 in the third quarter of 2019-20.
Under the company’s previously approved plan, which focuses on parent bank customers and cardholders, it has greatly assisted the SBI Card in terms of adding a new card base, Amara added.
“It started in about 2017, now it has reached a good volume. It delivers well but if you look at our disclosure, more than 50 percent come from our banking institution which you call SBI,” Rao said further. .
He further added that in particular, during the first and second quarters of FY21, when market open spaces were closed and purchases were limited, the company’s banking station helped it grow. “We were able to get back to about 10,000 accounts a day, which was a normal way to run the best times. Therefore, we were able to get back to that trend in Q3.”
And, in particular, this growth came from the tier-II, -III and -IV cities, in addition.
Amara also said the company will continue to work with its parents’ bank.
“If you look at the customers of our parent bank, more than 400 million. We have never checked the base of 20-22 percent. So, there are a lot of roads left,” Rao said.
However, he said the company will always be looking forward to building a new bond and has recently partnered with Jio Payments as well.
In partnership with the company and various airlines, which have been hit hard during the closure and are moving under the power of evacuation, Amara said the business is affected by that, but has high hopes that it will get back on track once things get normal.
Nine months ago in December 2021, the SBI Card saw a steady increase in its earnings of 7,245 crore. Also, total profits decreased by 30 percent to 9 809 crore during the April-December 2020-21 period.
Rao said the company has already reached pre-COVID-19 business in the third quarter and expects to send decent numbers to the entire budget.
The company is expected to announce the end of this funding by the end of the fourth quarter of 2020-21.