State Bank of India (SBI) is reportedly planning to sell a part of its stake in its credit card joint venture (JV) through IPO.
According to The Economic Times report, the state-owned lender aims to raise around INR50bn-INR60bn ($724m-$868m) through the proposed stake sale.
Currently, the bank holds a 74% stake in the SBI Cards Payment and Services (SBI Cards). The remaining stake is with American private equity firm The Carlyle Group.
The proposed IPO is pegged at nearly INR80bn and SBI Cards has started discussions with merchant bankers on the move, the report added citing sources familiar with the matter.
If the deal advances, SBI Cards will be the first pureplay credit card company to be listed in the country. Additionally, SBI’s stake in the credit card JV is expected to drop to 60%.
However, SBI and SBI cards did not respond to The Economic Times queries on the proposed IPO.
In 2017, the Carlyle Group acquired a 26% stake in SBI Cards from GE Capital for nearly INR20bn. Currently, SBI Cards has the second largest credit card customer base in India with 8.7 million users.
HDFC Bank tops the list with 12.7 million customers.
A Fortune 500 company, SBI is largest bank in India with total assets of around $530bn. It operates more than 24,000 branches and 59,000+ ATMs.