SBI Card, a non-banking financial company (NBFC) of State Bank of India, has launched a new credit card for micro, small, and medium enterprises (MSMEs) called SimplySAVE Merchant SBI Card. The card is available on the RuPay network and can be linked to UPI for payments through various UPI-enabled third-party apps.
The SimplySAVE Merchant SBI Card offers interest-free short-term credit to MSMEs to help them meet their working capital needs. The card also offers other benefits, such as rewards points and cashback, to MSMEs.
Dinesh Khara, Chairman of State Bank of India, said the launch of the SimplySAVE Merchant SBI Card is an attempt to address the need for easier and timely access to formal credit for MSMEs. He said MSMEs contribute significantly to economic growth and job generation, and it is important to empower them.
SBI Cards and Payment Services, the NBFC that issues the SimplySAVE Merchant SBI Card, had a base of over 17 million cards as of the first quarter of the current financial year. The company did not disclose information about the credit limit and other offerings on the card in its statement.
In the first quarter of FY24, SBI Cards and Payment Services reported a 5 per cent decline in its profit after tax year on year at Rs 593 crore. The total revenue had increased by 24 per cent YoY at Rs 4,046 crore. In terms of asset quality, its net non-performing assets were at 0.89 per cent as of June 30, 2023, as against 0.79 per cent as of June 30, 2022.
The SimplySAVE Merchant SBI Card is a welcome move by SBI Card to address the need for credit for MSMEs. The card offers a number of benefits that will be useful for MSMEs, such as interest-free short-term credit and rewards points. This card will help MSMEs to improve their cash flow and grow their businesses.