The State Bank of India and the Carlyle Group today announced that they have completed the acquisition of GE Capital Group’s entire stake in SBI Card, the second-largest and fast-growing credit card franchise in India.
The State Bank of India and the Carlyle Group today announced that they have completed the acquisition of GE Capital Group’s entire stake in SBI Card, the second-largest and fast-growing credit card franchise in India. SBI Card is operated through two joint-venture companies, SBI Cards & Payment Services and GE Capital Business Process Management Services, which issue credit cards and process card transactions in the Indian market. SBI and Carlyle now own 74% and 26%, respectively, in each of the two entities. Talking about this development, Dinesh Kumar Khara, Managing Director, Risk, IT & Subs, SBI, said, “We are confident that we, together with Carlyle, will be able to take SBI Card to the next level of success. We have put the proper systems in place to increase our market share in the credit card business, and launched new initiatives to improve the synergy between SBI Card and the bank. We extend our heartfelt appreciation to GE Capital, the outgoing partner, who has progressively collaborated with us in building SBI Card to the level where it stands today and for completing the smooth transition together.”
Sunil Kaul, Managing Director of the Carlyle Group, said, “Today is an important milestone as SBI Card enters a new phase of development under this new partnership. Carlyle and SBI share the same vision for SBI Card and the credit-card industry and are very excited about the company’s growth prospects.” “I would like to thank the State Bank of India for their support in finding a solution that works best for all parties and enabling GE Capital to fully exit our stakes in SBI Card and the card processing company,” said Rich Laxer, GE Capital Chairman and CEO. “State Bank of India has been a great partner over the last 19 years providing value for customers and we wish them continued success in the new partnership with Carlyle,” he added.