SBI card users are going to get a big shock. The company has decided to discontinue complimentary domestic airport lounge benefits on some of its cards. This decision of SBI Card will be applicable from May 1 next month. According to the company’s website, it has tie-ups with 42 lounges across 21 airports in the country. Apart from this, there will be a big shock regarding cashback.
SBI card users are going to get a big shock. SBI Cards and Payment Services has decided to discontinue complimentary domestic airport lounge benefits on Cashback SBI Cards. This decision of the credit card issuing company SBI Card will be applicable from May 1 next month. According to the company’s website, it has tie-ups with 42 lounges across 21 airports in the country. Now from next month, cashback SBI card users will not be able to access these lounges. As of December 2022 quarter data, it has issued over 1.5 crore cards in total.
Eclipse on discount
Apart from doing away with lounge access for some customers, card major SBI Card has also decided to limit the maximum cashback on online and offline spends to Rs 5,000. Apart from this, cashback benefits will end in the categories of jewellery, school and educational services, utilities, insurance services cards, gifts, novelty and souvenir shops, financial institutions and railways. The company informed about these changes on Thursday.
The declining health of SBI Cards
SBI Card is a Non-Banking Financial Company (NBFC). It offers a comprehensive range of credit card related services to individual cardholders and corporate clients. Talking about the business of the company, its health is continuously declining. Over the past few quarters, its revolver rate has come down from 45 per cent in the June 2021 quarter to 24 per cent in the December 2022 quarter. Its yield has also slipped from 22.4 per cent to 16.4 per cent during this period.
Its Net Interest Margin (NIM) came down to 11.6 per cent in the December 2022 quarter, which is a record low. However, its market share fell from 19.2 per cent on an annual basis and increased from 19.1 per cent on a quarterly basis to 19.3 per cent in the December 2022 quarter. Talking about asset quality, its gross NPA increased to 2.22 per cent and net NPA to 0.8 per cent.
