SBI Looking To Sell 14% Of Stake In SBI Card Business
SBI Credit Card is a non-banking financial company. It plans to go public through an initial public offering. The firm has already initiated the IPO process. Now, the latest news is India’s largest bank SBI and Carlyle plans to sell their part of stake in the SBI Card business via SBI Card IPO.
A source has already stated that SBI plans to raise over Rs 8,000 crore by selling 14 percent of a stake through this offer. Moreover, Carlyle Group also looking to sell its stake in SBI Credit Card Business.
SBI Card is a payment solutions provider in India. It is a joint venture between the State bank of India and the Carlyle Group. As of the source, the SBI held 74 percent of stake in SBI Card. The remaining stake was held by the Carlyle. These two firms looking to dilute their holdings in SBI Card through the upcoming public offer.
Carlyle Group had combined with SBI as a joint-venture of SBI Card in 2017. Before that, the credit card business was operated between GE Capital and SBI.
According to the report, the State Bank of India had bought 74 percent of stake in card business from GE Group when GE Capital was quit from SBI Card.
In the H1 FY19, the SBI card noted a huge growth in the market as 92 percent in terms of liquidity as Rs 727crores from Rs 378crore.