State Bank of India (SBI) on Wednesday said it is planning to dilute stake in its card business through the initial public offer (IPO) route.
The country’s largest lender currently holds 74 per cent stake in SBI Cards & Payment Services Private Limited.
The Executive Committee of Central Board of the bank at its meeting held on Wednesday “has given in-principle approval to explore the possibility of diluting SBI’s stake in SBI Cards & Payment Services Private Limited, a subsidiary company through IPO route at an opportune time, subject to the approval of RBI and other regulatory agencies in this regard,” the bank said in a regulatory filing.
Further, specific disclosures on offer for sale (OFS) by promoters will be be given, once the same is finalised by the bank, it said.
The bank had launched SBI Card in October 1998. In December 2017, SBI and the Carlyle Group acquired GE Capital’s stake in the joint venture. SBI holds 74 per cent, while Carlyle holds 26 per cent in the JV. Currently, the bank has a consumer base of about 6 million using its SBI Card services for payment of products and services.
SBI Chairman Rajnish Kumar earlier this month had indicated that the public offer would be made in the fourth quarter of the current fiscal.