State Bank of India (SBI) on Friday said the Carlyle Group has completed the acquisition of GE Capital’s entire 26% stake in SBI Card, which is the second largest and credit card issuer in the country.
SBI Card is operated through two joint ventures — SBI Cards & Payment Services and GE Capital Business Process Management Services. The latter issues credit cards and processes card transactions. With this SBI owns 74% and Carlyle holds 26% in each of the two entities.
Dinesh Kumar Khara, State Bank managing director (risk, IT & subsidiaries), said, “together with Carlyle, we will be able to take SBI Card to the next level of success. We’ve put proper systems in place to raise our market share in the credit card business, and launch new initiatives to improve the synergy between SBI Card and the bank.”
GE Capital has been the JV partner since the beginning with SBI Card that began 19 years ago. Sunil Kaul, managing director at Carlyle Group said, “as SBI Card enters a new phase of development under this new partnership, we share the same vision for SBI Card and the credit-card industry and are very excited about the company’s growth prospects.”
Rich Laxer, GE Capital chairman and chief executive said, “State Bank has been a great partner over the last 19 years providing value for customers and we wish them continued success in the new partnership with Carlyle.”
GE Capital exited SBI Card as part of its global strategy to exit the financial services sector announced two years ago.
Source: Mint