SBI to revamp credit card business

The dismal performance of the particular subsidiary hasn't gone well with the bank.

"We are addressing the issue seriously, as its the only subsidiary which is running into losses," said C Narasimhan, deputy managing director and group executive (global markets).

SBI Cards have incurred a loss of around Rs 150 crore in the last fiscal with NPA at around 16.25 per cent.

 

Also, the largest public sector bank is replacing the existing CEO of SBI Cards, Roopam Asthana, from GE Money with its own officer. In addition to this, the bank is planning to place 12 of its officers in the joint venture company.
According to another deputy managing director of the bank, who is also one of the board members, the bank is exploring every option including new partners.

"We are considering every options. We might look for a new partner as well," he said while talking to Business Standard.

He also added that the bank is ready to forego business growth in a bid to consolidate the existing business.
"We would try to channelise the entire distribution through our branches only to ensure proper scrutiny of the prospective card holders," he said.
Similarly proper delinquencies would be ensured while online processing, and the marketing strategies too would be revisited.

However, OP Bhatt, chairman and managing director of SBI, dismissed any claims regarding new partners or differences with the GE Money.

"We will have our own CEO from now and along with this we are planning to implant a dozen officers in the card business.

We will be meeting the GE people some time next month and discuss the issue," said Bhatt,

"There are no differences in opinion with GE and we are working together in finalising the restructuring process," he added.

SBI Cards is a 60:40 joint venture between SBI and GE Money and it has issued more than 3.1 million cards till date.