Shares of SBI Cards and Payment Services advanced in morning trade on July 11 after the company announced a change in management.
At 10.45 am, the stock was trading 0.83 percent up at Rs 842.50 on the BSE.
In a regulatory filing post market hours on July 10, SBI Cards said its Managing Director and CEO Rama Mohan Rao Amara has tendered his resignation with effect from August 11 owing to his transfer back to the State Bank of India (SBI).
The company has appointed Abhijit Chakravorty as Managing Director & CEO with effect from August 12, 2023 for a period of two years, subject to shareholders’ approval at the ensuing Annual General Meeting.
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Shares of SBI Cards are up 6 percent on YTD basis, though the 1-year return stands at (-)1.20 percent. As of the quarter ended March 2023, the promoter group held 69.02 percent stake in the firm, with the rest 30.98 percent with public shareholders.
SBI Cards is India’s leading issuer of credit cards. In FY23, the company added 52,02,000 new accounts, and registered a 41 percent YoY growth in retail spends.
“The domestic credit card base, which is underpenetrated, is expected to continue to grow at a rapid pace, with the company benefiting amid rising discretionary spending. In the short term, though, margins are expected to be impacted with further rise in cost of funds,” brokerage Geojit said in a recent note.
As per RBI’s Consumer Confidence Survey, a third of households expect increase in non-essential outlay during FY24, which would boost consumer demand and discretionary spends, it added.
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