The State Bank of India is planning to merge its two credit card outfits.
SBI Cards & Payment Services Pvt Ltd handles the credit card marketing function and GE Capital Business Process & Management Services Pvt Ltd deals with the processing function.
"We are at the preliminary stage of working out a merger between SBI Cards and GE Capital," said Ashok Kini, deputy managing director, SBI on the sidelines of a press conference.
The shareholding and the name of the new entity are yet to be finalised, added Kini.
SBI is also weighing the option of tying up with MasterCard in addition to Visa in order to enable card payments. Most large card issuers have tie-ups with both Visa and MasterCard.
SBI holds the majority 60 per cent stake in the marketing arm, SBI Cards & Payment Services Pvt Ltd while GE holds 40 per cent. In GE Capital Business Process & Management Services Pvt Ltd, GE holds 60 per cent stake and SBI 40 per cent.
"We are still trying to study what kind of benefits we will derive from merging the two outfits. Already the HR and the administration functions are merged and there is little duplication," said Roopam Asthana, CEO of both the companies.
Asked about the timing of the merger, said Asthana, "It is difficult to say. We are studying the matter and our focus is on growth." SBI-GE is now in the fourth place in terms of card issuances with 1.6 million cards in force.
The bank on Monday launched the SBI social card, which will donate a percentage of the card spends, annual fees and reward points towards four non-profit organisations in the country, namely, Cancer Patients Aid Association, National Association for the Blind, SOS Children's Villages of India and the World Wildlife Fund. The bank aims to issue about 25,000 social cards by December 2005.
