State Bank of India, the country’s largest lender, forayed into the credit card business in 1998 by roping in GE Capital, as its joint venture partner. GE Capital owns 40% stake, and the remaining stake is held by SBI. (Reuters image for representation only)
SBI Cards, India’s third-biggest credit card issuer, expects “robust” operations to continue, even after the exit of GE Capital, its long-time joint venture partner in the business, the company’s chief executive officer Vijay Jasuja said on Wednesday.
State Bank of India, the country’s largest lender, forayed into the credit card business in 1998 by roping in GE Capital, as its joint venture partner. GE Capital owns 40% stake, and the remaining stake is held by SBI.
In April, General Electric, the parent company of GE Capital said it would exit finance business, as part of its broader strategy to transform into an industrial company. As part of that plan, GE Capital is also exiting its credit card joint venture with SBI in India. GE Capital has reportedly appointed Morgan Stanley in India to find a buyer for its stake in SBI Cards.
“In terms of credit spends we are already ahead of ICICI Bank, which has about 16% market share. Our market share stands at 15%. So, not much of a difference. We are eyeing the second position,” Jasuja said.
There are about 3.2 million credit cards in circulation with the company and total spends per month at present stands at Rs. 2257 crore, which is growing at around 35% rate.