SBI Cards and Payment Services Ltd today became one of the few companies in India with over Rs 1 trillion in market cap.
Though the large-cap market was somewhat slow today, the recently listed stock of the company today reached its lifetime high of Rs 1,095 on the Bombay Stock Exchange. In the one and a half months of 2021 itself, the share has risen close to 23% showing positive upwards trend.
The SBI Cards IPO was issued at Rs 750-755 per equity share on March 2, 2020, and was listed on the NSE and the BSE on March 16, 2020. The pandemic had struck suddenly and the stock touched its all-time low of Rs 495.25 as of May 22, 2020.
It however made a good recovery and paired with increasing revenues, the 9-month-old stock has now given over 117% returns to its shareholders.
For the quarter-ending December 2020, SBI Cards had reported 4.5% of gross bad loan ratio, which was a major improvement compared to the September 2020 quarter results which revealed the gross bad loan ratio to be at 7.46%.
SBI Cards’ gross write-offs had also improved in the last quarter and were reported at Rs 648 crore compared with Rs 218 crore in the last quarter. The company had made the decision to write off bad loans in the Q3 which received positive feedback from brokerage firms.
All these factors have contributed well to the growth of the company’s revenues and operations, resulting which SBI Cards has now crossed the Rs 1 lakh crore milestone in market cap.
