Friday, 20 January 2017

SBI might raise Stake in Credit Card Joint Venture

State Bank of India (SBI) might up its stake in its credit card joint venture, SBI Cards and Payment Services or SBICPSL, as well as find a brand new strategic partner to replace existing partner GE Capital during the present quarter. Also, India’s largest lender will ‘zero in’ on a novel partner to replace GE Capital in GE Capital Business Processes Management Services or GECBPMSL, which takes care of the technology and processing needs of the SBI Card. SBI holds 60% stake in SBICPSL and 40% in GECBPMSL with the balance being held by GE Capital in both ventures.

Managing Director of SBI - Dinesh Khara, said that the process of finding novel strategic partners in the 2 ventures would be completed by end of March. However, he didn’t elaborate on who the novel partners would be. There are reports that global financial services firms and private equity funds are keen on picking up GE Capital’s stake in SBICPSL and GECBPMSL. Meanwhile, SBI share price opened at Rs 257.20 on the NSE today.

No comments:

Post a Comment