Pros:
SBI Cards is only standalone company focused entirely on cards business unlike other issuers like HDFC, ICICI etc have their cards operations as part of the banking business.
SBI Cards is the second largest card issuer after HDFC Bank.
The industry average for the cards business stands at 3.5 per cent. Where as SBI Cards commands a relatively strong return on assets of 5.5 per cent, driven by better fees and low credit costs
Cons:
The exclusive focus on the unsecured cards business, however, increases the risk for SBI Cards from defaults by individuals.
SBI Cards would be a logical bet as there are no competitors per se. This in turn is driving the premium up.
Disclaimer: Before you make any investment decision do your own research.
