SBI: State Bank of India BSE -1.74% said today that it will increase its stake in its two credit card joint ventures with the General Electric Company to 74 percent. SBI's board has given approval to infuse Rs 1,160 crore into the two joint ventures - SBI cards and Pvt payment services Ltd (SBICPSL) and GE CapitalBSE's 0.18% Business Processes Management Services Ltd (GECBPMSL) through purchase Of GE Capital shares as well.
To increase the bank's share in both companies to 74 percent, SBI said in a presentation to the BSE.The American company seeks to exit SBI cards. At present, SBI owns 60% of SBICPSL and 40% of GECBPMSL.
The balance held by GE Capital in both businesses. According to an agreement between SBI and GE Capital at the time of the formation of SBI Cards, it was decided that whenever a party decides to leave the joint venture, the decision has to be based on mutual understanding.
SBI, the nation's largest lender, entered the credit card business in 1998 to roping GE Capital India, the consumer finance arm of GE Capital, based in the United States. Currently, the board of SBI Cards has eight members, including three from GE Capital. Shares in the SBI closed at Rs 277.40, up 0.98 percent on BSE.