Stockrabit · Analysts
Questions across 4 calls

Abhijit Chakravorty

Firm not listed in source transcripts

SBI Cards and Payment Services Limited

SBI Cards and Payment Services Limited CC-Jun24.pdf · 2024-07-26
Correct, So, new to credit and new to credit card is through Banca channel.
We have data with us and our portfolio, we have seen that when we onboard a customer, even an NTC or a customer having zero active trade lines at the time of on-boarding, over a period of time, and we have analysed our written off portfolio, we find that at the time of write -off, they carry a minimum of 1 to 5 going up to 10 trade lines. So, one is the financial position, how many trade lines were there, minimal, Bureau score, Prime, all taken together onboarding not an issue, but post onboarding the behaviour changes.
SBI Cards and Payment Services Limited CC-Mar24.pdf · 2024-04-26
Coming to the credit cost part. We had stated in the previous earnings call also that based on the portfolio analysis and an account level scrub, we had identified, and we have been monitoring closely the accounts, which are having early trends of delinquency. And we have taken actions on that part. Now what happens is that as the recent acquisition component increases and the portfolio mix stabilizes, definitely , there will be improvements and that's where we are seeing that there will be a reduction. But whether it will come down below 7%, it will be difficult to estimate and comment as of now.
So basically, we provide them some headroom to pay out. So basically, it will be converted into EMIs. And like any amortized loan, it is allowed to be paid over a certain period, can vary up to 12 months or more also . So that depending upon their own cash flows, they are able to pay us out comfortably without asking for the entire delinquent amount to be paid upfront after they have turned NPA.
SBI Cards and Payment Services Limited CC-Sep23.pdf · 2023-10-27
So, 2019 cohort, we have sort of controlled. In our earlier calls, we have stated that what kind of steps we have taken over there. And those portfolio level actions have done us good. We were expecting good results out of that during the quarter , trajectory should have been lower. But where we find ourselves in the present credit card scenario is somewhere the unsecured loan environment prevailing in the ecosystem. Somewhere we are finding that we are not untouched from the sentiments on unsecured loan scenario. So, while we were expecting better trajectory, downward trajectory from where we were in Q1, we are finding slight stress, not in any particular cohort. But generally, there are customers who are under stress are not able to pay during the period. This somehow has offset whatever gains we would have got, not only on the 2019 cohort because somewhere we found that those type of cohorts would have prevailed during the subsequent years also. But then the portfolio actions were uniform, and we were expecting better results out of those portfolios. But then somewhere we are not untouched out of the overall unsecured loan scenario prevailing, which is quite prevalent and well known.
Difficult to say entirely for the second half, but Q3, we expect the levels to remain elevated.