SBI Card aims to keep non-performing assets at 2.4-2.5%: CEO
SBI Cards and Payments Services aims to raise nearly $1.25 billion via an IPO.
By Reuters | Updated:
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MUMBAI: SBI Card aims to keep the proportion of non-performing assets at 2.4 per cent-2.5 per cent of its total assets, Chief Executive Officer Hardayal Prasad said on Tuesday while addressing the media ahead of the company's initial public offering.
Gross non-performing assets stood at 2.47 per cent at the end of last year, down from around 2.9 per cent in March 2018.
SBI Cards and Payments Services Ltd, the credit card subsidiary of the country's largest lender State Bank of India (SBI), aims to raise nearly $1.25 billion via an initial public offering.
The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, according to its prospectus released earlier this month. The price range for the IPO has been fixed at 750-755 rupees per share.
The issue will open for subscription on March 2 and close on March 5. SBI Card has the second largest market share in terms of number of cards and also in terms of market spend.
The company has had several discussions with the government on the fees merchants pay for the processing of card payments and has been assured that credit cards will not be affected, Prasad said at the briefing.
India's Finance Minister Nirmala Sitharaman last year said businesses with annual turnover of 500 million rupees will not have to pay a merchant discount rate on debit card and other digital modes of transactions, excluding credit cards.
SBI Card is 74 per cent owned by SBI while Carlyle Group owns the remaining 26 per cent. Carlyle bought the stake in 2017 from the lending arm of General Electric for about 20 billion rupees.
As a part of the IPO process, SBI will divest 4 per cent of its stake, while Carlyle is set to sell 10 per cent of its stake.
Gross non-performing assets stood at 2.47 per cent at the end of last year, down from around 2.9 per cent in March 2018.
SBI Cards and Payments Services Ltd, the credit card subsidiary of the country's largest lender State Bank of India (SBI), aims to raise nearly $1.25 billion via an initial public offering.
The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, according to its prospectus released earlier this month. The price range for the IPO has been fixed at 750-755 rupees per share.
The issue will open for subscription on March 2 and close on March 5. SBI Card has the second largest market share in terms of number of cards and also in terms of market spend.
SBI Cards and Payment Services, a subsidiary of the State Bank of India (SBI), will hit the primary market with a Rs 10,350 crore initial public offering on March 2. The IPO will be the fifth biggest in India so far. With investor interest already high in the IPO, we bring you all the details you need to know before hitting 'subscribe' on the issue:
(With inputs from Yes Securities and Axis Capital)
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The company has had several discussions with the government on the fees merchants pay for the processing of card payments and has been assured that credit cards will not be affected, Prasad said at the briefing.
India's Finance Minister Nirmala Sitharaman last year said businesses with annual turnover of 500 million rupees will not have to pay a merchant discount rate on debit card and other digital modes of transactions, excluding credit cards.
SBI Card is 74 per cent owned by SBI while Carlyle Group owns the remaining 26 per cent. Carlyle bought the stake in 2017 from the lending arm of General Electric for about 20 billion rupees.
As a part of the IPO process, SBI will divest 4 per cent of its stake, while Carlyle is set to sell 10 per cent of its stake.
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