SBI to raise its stake to 74% in SBI Cards, GE Capital's arm

At present, SBI holds 60% stake in SBI Cards and Payments and will acquire another 14% stake

State Bank of India (SBI) will invest up to Rs 1,160 crore to raise its stake to 74 per cent in SBI Cards and Payment Services  and GE Capital Business Process Management Services . It would buy out part stake from financial services wing of US-based General Electric to raise its holding to 74 per cent.

The board of SBI gave nod for the proposal, the country’s largest lender informed BSE. 

At present, SBI holds 60 per cent stake in SBI Cards and Payments and will acquire another 14 per cent stake. 

In the case of GE Capital Business Process, it will purchase 34 per cent to hike holding to 74 per cent GE, which is exiting from financial services business worldwide, would hold 26 per cent stake. Eventually, GE would offload stake to new investor, SBI group sources said. SBI Cards reported a profit of after tax (PAT) of Rs 284 crore on an asset base of Rs 7,880 crore in 2015-16. Its PAT was Rs 267 crore on an asset base of Rs 6,257 crore in 2014-15.

SBI to shut Paris branch

Country’s largest lender, State Bank of India (SBI), is planning to scale down its presence in Paris, by converting its branch into a representative office to stem dent in returns on investments due to rising compliance costs.

Europe is very costly for the operations, given the fact that capital is so scarce and costly now. At present, the return from the office in Paris is not according to the benchmarks set for operations.