Good news for SBI Card investors! Finance Ministry allows Aadhaar Based Verification – What does this mean? Anil Singhvi decodes

In apparent good news for SBI Card’s investors, the revenue department of the Finance Ministry has found the card company’s data privacy report satisfactory and has also approved Aadhaar based verification process. The ministry has also approved the same for PhonePe along with SBI Card.

According to Zee Business Managing Editor Anil Singhvi says, it will be more easy and quick for SBI Card to issue credit cards to customers with approval of Aadhaar based verification.

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He adds, the competition to acquire maximum customers is not the only challenge of card companies and lenders but also to be technology equipped and maintain the regulatory norms.

Citing an example of HDFC Bank, Singhvi says the regulator didn’t even spare the biggest private lenders in this regard, however, lately they have been allowed to issue credit cards.

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SBI कार्ड्स और #PhonePe के डाटा प्राइवेसी स्टैंडर्ड संतोषजनक
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वित्त मंत्रालय के राजस्व विभाग ने नोटिफिकेशन किया जारी #RevenueMinistry #SBICards @AnilSinghvi_ pic.twitter.com/hZOkuMHyN7

— Zee Business (@ZeeBusiness) September 24, 2021

The market analyst Siddhart Sedani termed Aadhaar based verification approval as really good news for the SBI Card, he adds the company’s parentage is strong and the business is good.

He points, SBI Card is growing well in the whole segment it’s the only listed company with such a business unique business model, as same as IRCTC. It acquired the market share after the CITI Bank’s division closure and it certainly helped the company most with a growth perspective.

Sedani has been recommending this stock since Rs 700-75 per share level and says it has more potential to grow as it is a splendid company.

SBI Card shares were listed exact few days before the government had announced covid led lockdown across the country last year. However, the stock indeed feel along with the whole market amid weak investor sentiments in early 2020.

The counter has been trading at the day’s low-level Rs 1031 per share, down near 2 per cent on the BSE intraday on Friday. The stock earlier this month had hit its 52-week high of Rs 1164.65 per share on September 1, 2021.