State Bank of India (SBI) has announced plans to list its card joint venture (JV) early next year.
SBI chairman Rajnish Kumar told news agency PTI that the SBI Card IPO will be launched in the January-March quarter.
Go deeper with GlobalData
The move is driven by high interest among prospective investors for the cards business, Kumar added.
Currently, the bank holds a 74% stake in SBI Cards Payment and Services (SBI Card). The remaining interest is owned by American private equity firm The Carlyle Group.
The move comes more than a month after it was reported that SBI plans to divest a part of its stake in SBI Card. The lender aims to raise around INR50bn-INR60bn ($724m-$868m) through the proposed stake sale.
Based on the final valuation of SBI Card, the state-owned lender will ‘take a call’ on the proposed divestment, Kumar told the news agency.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHowever, with no immediate need of additional capital, SBI shelved its plans to list its general insurance arm.
Carlyle Group acquired a 26% stake in SBI Card from GE Capital in 2017. With 8.7 million users, SBI Card has the second largest credit card customer base in India.
Earlier this month, SBI Card announced plans to introduce RuPay credit cards in India. Though no definite timeframe was given, the new offering is expected to launch this fiscal.
