SBI may merge two credit card joint ventures

State Bank of India, which is planning to hike stake in its card venture, may look at merging two of its joint ventures in the credit card business.

“We plan to eventually own 74% in both the joint ventures. Once this happens, there is no sense to run two entities for same business as there will be significant overlap,” SBI Card managing director and chief executive officer Vijay Jasuja said.

SBI currently has two entities under the credit card business — SBI Cards and Payment Services (SBICPSL) and GE Capital Business Process Management Services (GECBPMSL). The bank’s chairman has already indicated that it plans to hike stake in the cards business to 74% from 60% currently when GE sells its stake in the venture. According to reports, private equity majors Warburg Pincus and Caryle have evinced interest in buying GE’s stake. Japan’s Credit Saison is also in the running for the stake, according to the reports.

According to Jasuja, the timing to hike stake will very much depend on GE’s decision to exit the JV. “As soon as GE finalises the partner to whom it wants to sell, the transaction will happen. We are happy with any partner and the timeline for the entire process is beyond our control,” Jasuja said.

Meanwhile, Tata Capital and SBI Card have launched a credit card in collaboration with Star Bazaar. Shopping with this card will bring customers 3.5% value back at all Star Bazaar outlets plus the advantage of earning an additional up to Rs 500 bonus, through Star’s loyalty programme, every month.