SBI Cards and Payment Services have proven a futuristic new-payment method, including the Unified Payment Initiative (UPI), as unbeatable competitors, delivering on the prospects for its next general presentation ( IPO).
Before moving on to an IPO, a company must list the risk factors in the community to be able to make informed decisions. In its forecast, SBI Cards said the company’s primary competition remains with credit card issuers, and credit card issuers to some extent.
However, new players with new products have emerged. Credit card companies have competitions from businesses that operate their mobile laboratory or offer loans to their customers and other technology providers.
SBI cards, wallets, and tokenisation devices, including the ever-growing UPI, may pose a huge challenge as they are able to attract very low or no payment rates. no charge for traders' fees, ”SBI Cards said.
SBI Cards hopes that competition will grow stronger in the future. For example, many credit card providers have instituted reward programs that can be worse or better in the eyes of customers.
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"Given the pressures competitors increases, the ports may need to provide additional resources to provide recommendations valuable and attractive to those card holders, which badly affect the xaddigayada macaashkeena. In addition, , while we continue to & # 39; t keep the interest rate high for our overall credit card objective, increasing competition may reduce the interest rate we are able to charge our customers, which will eventually eliminate & # 39; our boat, "the company said.
The quality of their SBI cards was very healthy. As of December 31, the total non-performing performance (NPAs) as a percentage of total production was 2.47 percent, and compared to the net projection of 0.83 percent.
This is a slight deterioration since March 31, 2019, at a time when the cumulative NPA ratio was 2.44 percent while the NPA ratio was 0.83 percent. In March 2018, the ratio of gross and NPa was 2.83 percent and 0.94 percent, respectively.
Among other things, the NPAs of the card industry are affected by "the overall level of economic growth in India, the amount of non-performing loans in terms of our credit rating and monitoring policies."
Other factors include an increase in unemployment, prolonged concessions, reduced housing savings and income levels, a steady increase in interest rates, etc., it said.