SBI Card seeks partner as GE set to exit

Corporates, Bank and Technology processing company in fray

SBI Card & Payments Services, the third largest player in the credit card segment, has invited applications for finding a new partner as GE Capital is set to exit the space.

“We have floated the RFP (request for proposal) document and are hoping that the process will be completed by mid-January 2016,” said an official directly involved in the process. He also added they have seen initial interest coming in from banks and information technology companies, among others.

SBI Card & Payments Services is a joint venture between State Bank of India — India’s largest bank — and GE Capital. GE capital is set to exit the space as a part of its global business restructuring policy of exiting the finance business.

SBI had entered the credit card business in 1998 by tying up with GE Capital.

The partnership works through two joint ventures, SBI Card & Payment Services and GE Capital Business Process Management Services. While SBI Card & Payment Services takes care of the front end of the business, GE Capital Business Process Management Services is responsible for the management of technology and processing. GE Capital owns 40 per cent in SBI Card & Payment Services and 60 per cent in GE Capital Business Process Management Services.

According to Reserve Bank of India data, the total number of outstanding cards with SBI was at 3.36 million in August. HDFC Bank has the largest share in the segment, with the total number of outstanding cards at 6.48 million, followed by ICICI Bank at 3.39 million and then SBI.

During the April-June 2015 quarter, SBI Card & Payment Services posted a 46 per cent decline in net profit at Rs 62 crore compared to Rs 114 crore in the same period a year ago.