Mumbai: State run lender State Bank of India and private equity giant The Carlyle Group today announced completion of the acquisition of GE Capital Group’s (GE Capital) entire stake in SBI Card.
SBI Card is operated through two joint-venture companies, SBI Cards & Payment Services and GE Capital Business Process Management Services, which issue credit cardsand process card transactions in the Indian market.
SBI and Carlyle now own 74% and 26% respectively in each of the two entities.
“We are confident that we, together with Carlyle, will be able to take SBI Card to the next level of success,” said Dinesh Khara, MD, SBI in a statement. “We have put the proper systems in place to increase our market share in the credit card business, and launched new initiatives to improve the synergy between SBI Card and the bank. We extend our heartfelt appreciation to GE Capital, the outgoing partner, who has progressively collaborated with us in building SBI Card to the level where it stands today and for completing the smooth transition together.”
“Today is an important milestone as SBI Card enters a new phase of development under this new partnership,” said Sunil Kaul, Managing Director of The Carlyle Group. “Carlyle and SBI share the same vision for SBI Card and the credit-card industry and are very excited about the company’s growth prospects.”
In July this year, ending a two-year long deal process, Carlyle had picked up 26% stake in SBI Cards from GE Capital for an undisclosed amount after SBI decided to increase its stake in the cards JV to 74%.
Source: Economic Times