SBI Card and Payment’s IPO process initiated

SBI Card Profile

SBI Card was launched in October 1998 by the State Bank of India and GE Capital. Incorporated as SBI Cards and Payment Services Private Limited (SBICPSL), SBI Card is headquartered in Gurgaon, Haryana

In December 2017, State Bank of India and the Carlyle Group acquired GE Capital`s stake in the Company. SBI holds 74% while Carlyle holds 26% in SBI Card.

In Aug’19 name of company is changed to ‘SBI Cards and Payment Services Limited’ from ‘SBI Cards and Payment Services Private Limited’ with present authorized capital of Rs. 1500 Cr.

Registered Office: Unit 401 & 402,4th Floor, Aggarwal Millennium Tower E 1, 2, 3, Netaji Subhash Place, Wazirpur New Delhi – 110034 India

Within a short span of 10 months, they have achieved a credit card customer base of 1 lakh and entered the ‘1Million Card Club’ in 2002 and crossed the 2 million card base in 2005. Today, with over 9 million credit card customers, they are the second largest credit card issuer in the country with presence in over 130 cities in India. The company has a wide distribution network across open market, Tele-Calling, E- apply and Co-Brand channels with Pan India presence with 3701 people staff as on 31 Mar 2019.

Extensive product portfolio, which includes premium, classic, travel and shopping, exclusive and corporate cards, to cater to both individual and corporate needs.

Company has special focus on product development & Corporate Segment and through its campaign “Project Shikhar’ started in Oct’17 company is offering Pre-approved offers to customers which is going very well.

They have dedicated and customer oriented approach has won us various industry accolades for customer service, branding, product innovation and marketing.

SBI Card Financial Summary

Particulars 2018-19 2017-18 Growth(YoY)
Credit Card Base 8.27 Million 6.26 Million 35%
Income 7286.9 5370.2 36%
Finance Cost 1009.4 707.6 43%
Other Expenses 4887.2 3726.1 31%
PBT 1335.1 923 45%
PAT 865 603.1 43%

The company has declared dividend of Rs. 1 per share for the period ending 31 Mar 2019.


  • Payment trend are shifting from cash to digital; digital payments reached to 8% in FY’17 vs 2% in FY’08.
  • Credit Acceptance is growing in India, Retail Credit is growing at 11% CAGR.
  • E Commerce market expected to reach by $100 Bn by 2020, growing at 53% CAGR.
  • Government has now waived MDR on debit card payments on POS machines.
  • Government is pushing for electronic payments in its policies and even procurement.
  • Credit Bureau coverage is increasing ; 45% coverage in 2017; 3x growth in bureau check.


  • Govt push to UPI.
  • New Players entry into market.
  • Over leveraging of same customer by multiple issuers.

IPO/Offer for Sale:

SBI Cards and Payment Services Limited has initiated the process for Initial share sale through an offer of sale of around 14% of its issued and paid up capital.

“As we go forward, we will actually take a call (on IPO) and that call is to be taken by the promoters…at some point of time this decision will be taken,” SBI Card Managing Director and Chief Executive Officer Hardayal Prasad said.

As per the RBI, SBI Card ranked second with the credit card base and credit card spends capturing 17.6 per cent and 17.1 per cent market share in the respective categories.

Further details regarding IPO schedule, GMP, review and recommendations can be checked here:

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