SBI Cards‘ outstanding card base has grown at a CAGR of 28% over FY15-FY2019 (vs industry CAGR of 22%) with market share of ~18% at Sep-19. With low credit card penetration in SBI customers, strong brand name and distribution, SBI Cards has potential to grow its card base at ~23% CAGR over the next 5 years leading to market share of ~22.5% by FY24. In this backdrop, we do a SWOT Analysis on the Business Model of the SBI Cards.
SBI Cards Strengths
The tutelage provided by SBI gives natural advantage to SBI Cards in growing its business. The advantages come in the form of brand, trust, access to vast customer base and distribution strength. For example: In FY19, 55% of the new customers were sourced from SBI’s customer base. With more than 20 years