SBI Cards and Payment Services was down 0.28% to Rs 588.80, extending decline for the third day.
The stock has fallen 4.78% in three sessions from a recent closing high of Rs 618.40 recorded on 31 March 2020.SBI Cards and Payment Services after market hours on Friday (3 April 2020) said that it has closed all its offices across India after the government announced a 21-day nationwide lockdown till 14 April 2020 due to novel coronavirus (COVID-19) pandemic.
It further said that its business continuity plan (BCP) has kicked in and all our critical processes are running as usual, with our workforce supporting the critical business operations remotely from home.
The company said its customer acquisitions process is currently discontinued as it is not feasible for it to run sales activities due to country wide lockdown of offices and sourcing locations. It added that post lifting of lockdown, it may take a while for new account sourcing to come back to earlier levels.
On retail spends, the country's second-largest credit card issuer said there is a significant decline in discretionary spends. In categories like airlines, travel agents hotels, railways, entertainment and dining, spends have dropped to almost nil.
Departmental stores and groceries spends did witness temporary increase for a couple of days post lockdown, however these have also come down lately. Categories like online grocery and utility payments specifically Insurance premium payments which are seasonal in nature have so far remained stable. While the ticket size of retail spends have remained stable, overall number of transactions have reduced significantly.
The company's collections and recovery efforts have been severely impacted due to complete shutdown of our tele-calling and field collection units post lockdown. However, collection tele-calling has since been restored partially by deploying work from home dialer setup and we are promoting digital payment channels to our customers.
"Customer repayments have lately seen a dip, however these are continuously being monitored especially considering the moratorium announced by RBI and the number of customers availing the same", the company said in a statement.
SBI Cards has already executed certain portfolio management actions for high risk customers and may further expand the universe of customers who will be offered programs like restructuring and settlements.
RBI has announced COVID-19 Regulatory Package which included the three-month moratorium on loan installments payments by borrowers.
SBI Card said its board has considered and approved the Moratorium policy, and the same been implemented. "It is applicable to eligible customers (who have no delinquency or overdue with us as of 1 March 2020)."
The subsidiary of State Bank of India further said treasury operations including borrowing activities were functioning normally. "All our contractual payment obligations are being serviced on time and there is no liquidity risk due to availability of adequate sanctioned borrowing limits."
SBI Cards and Payment Services offers an extensive credit card portfolio to individual cardholders and corporate clients, which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.
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