Performance at SBI Cards holding up well in Covid times. Volume of business to move up once normalcy returns

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SBI Cards is India’s only listed credit card company. There are two revenue streams – interest on credit card outstandings and fees and commission on transactions. Despite lockdown, the company’s performance as been steady with very low delinquencies. Adoption of credit cards is fast spreading across the country and this trend is highly beneficial to the company. Despite fair valuations, we have an over weight rating due to excellent growth prospects, exceptional track record and pedigree of its promoter -SBI, which is India’s largest bank – 21-07-2020 Price: 787 Rating: Over weight Reommendation : Buy

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