SBI Cards and Payment Services Limited posted a total revenue of Rs 14,286 crore in FY2023, up 26 per cent on-year. In its annual report, SBI Card said that its profit after tax increased to Rs 2,258 crore, registering a significant 40 per cent growth over FY2022. “Our robust business model, along with our calculated decisions, agility, and adaptive approach, have driven meaningful and sustainable growth, and we are well-equipped to continue it,” said Rama Mohan Rao Amara, Managing Director & CEO, SBI Card, while addressing the shareholders. SBI Card also announced the payment of interim dividend of Rs 2.50 (that is, 25 per cent) per equity share of Rs 10 each for the financial year ended March 31, 2023.
In terms of card spends, SBI Card’s market share has been 18.2 per cent for the year. “We recorded the highest ever retail spends in FY2023 at over Rs 2 lakh crore, with online spends accounting for 57 per cent share. We also witnessed healthy growth across key spend categories such as departmental stores, health, utilities, education, travel, entertainment and restaurant,” said Rama Mohan Rao Amara. During Q4FY23, SBI Card registered a 32 per cent on-year growth in card spends at Rs 71,686 crore and retail spends contributed to over Rs 55,500 crore.
Digital payments scenario in India
According to a recent report, India’s digital payments market is expected to grow from the current $3 trillion to $10 trillion by 2026, representing an increase of more than threefold. The industry’s cards have grown at 18 per cent CAGR in the last five years, from FY18 to FY23, with spends increasing at 26 per cent CAGR during the same period.
Even with the global headwinds, India’s consumption-led economy remains robust, driven by several favourable factors, including the digitisation of payments, demographic dividend, and increased disposable incomes, said Dinesh Kumar Khara, Chairman, State Bank of India, adding that Indian consumers, today, are massively adopting digital payments such as UPI, credit cards, etc. “The credit card industry has been showcasing a consistent growth, with the number of credit cardholders expanding from 7.4 crore in March 2022 to 8.5 crore in March 2023. Card spends increased significantly by 28 per cent from Rs 1.07 lakh crore in March 2022 to Rs 1.37 lakh crore in March 2023 – the highest ever monthly spends for the industry, as of March 2023. FY2023 also saw the highest ever annual card spends in the industry at over Rs 14 lakh crore, with e-commerce contributing significantly,” he said.