Morgan Stanley maintains 'equal-weight' on SBI Cards despite fall in spending market share for November

SBI Cards shares have seen a fall of 10 percent over the past 12 months.

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26 Aug, 2025 12:21

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Credit card major SBI Cards Ltd. saw a gap-down open in trade on December 24, as investors showcased their disappointment with the player's spending market share fell for the month of November, 2024.

SBI Card's November spending market share fell month-on-month to 14.9 percent compared to 15.8 percent in October 2024. The firm's spending market share fell 20 percent on-year, while the industry saw a growth of five percent.

At 9.30 am, shares of SBI Cards were quoting Rs 690.3, near the flatline, down 0.1 percent compared to the previous session's close.

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According to international broking house Morgan Stanley, the fall in market share reflects the ongoing impact of the Reserve Bank of India (RBI) notification on corporate cards spending.

On March 7, 2024, the RBI tightened rules for credit and debit cards used for business accounts. The central bank asked business card-issuers to put in place an effective mechanism to monitor end use of funds.

The brokerage maintained its equal-weight call on the player, with a target price of Rs 650 per share. This indicates a downside of around 6 percent.

SBI Cards' market share of number in credit cards in force stood at 18.7 percent for November. Further, the volume of transaction rose 30 percent on-year for November, compared to the industry's rise of 32 percent. Average daily spending was up around eight percent so far in December, compared to four percent in November.

SBI Cards have seen a turbulent year on the bourses, ultimately recording a fall of 10 percent over the past 12 months. During this time, the Nifty 50 index has recorded gains of around 13 percent.

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