India’s economy is locked out of its growth path as its residents, cooped indoors, are unable to spend and prop it up. Consumption has been hit severely, and it is hurting SBI Cards and Payment Services Ltd, the country’s second-largest credit card company.
SBI Cards is finding it a challenge to garner new spenders, while the existing ones are unable to swipe their cards enough to fuel the company’s revenue growth.
The stand-alone cards issuer said it added 851,000 new accounts in the March quarter, a 10.9% decline from the previous year. “The lockdown has severely impacted sourcing and sales since malls, transport hubs and other commercial areas are shut," said Hardayal Prasad, managing director and chief executive of SBI Cards, in an