As people lost jobs amid the pandemic, their ability to repay credit-card dues suffered.
Dear Balbir Singh,
There are few companies in the stock market that have the fortune of SBI Cards and Payments Services. Its initial public offer in March could have been the best in terms of retail participation and listing returns. But trouble was around the corner. As the pandemic hit the world, the immediate effect was visible on the credit business – rising defaults and bad loans. Our first story takes a closer look.

MARKETS 
Pandemic-hit SBI Cards stares at mounting NPAs

As people lost jobs amid the pandemic, their ability to repay credit-card dues suffered. This has led to an increase in bad debt for lenders in general, while SBI Cards and Payments Services, being the market leader, has been hit the most. Two key factors will make a recovery all the more difficult for the company.

CONSUMER 
Consumer companies need to refocus rural strategies

Across consumer-facing industries, excelling in rural India is seen as a key element in recovering the ground lost to the Covid-19 pandemic. With rural accounting for 35%-40% of the business for most companies, having a distinct strategy is imperative to drive business growth over the next three to four quarters. However, in the meantime, the rules of the game to make a mark in the hinterland have changed.

AUTO
City and Amaze can no longer pull the cart

For long, Honda has banked on its star-performer sedans. But the segment has lost its sheen, as consumer preference has shifted to compact SUVs. Honda’s earlier efforts to get a foothold in the SUV market did not really work. So, what is it that can save the day for the carmaker?

Regards,
ET Prime Team