The initial public offer of SBI Cards and Payment Services will open on March 2 and closes on March 5.
According to SBI Managing Director Dinesh Khara, the idea is not to really divest to create gains for the banks, but that the company should have alternative capital resources for its growth. "We want to make it independent when it comes to raising capital because going forward we expect that we will decouple these companies," he observed.
Speaking about further stake dilution in the subsidiary, Khare said, “So long as State Bank name and tag are there with these companies, we will keep our stake at more than 50 percent. But in this particular company, we have a long way to go..”
Khare sees a lot of opportunities to grow. "We are cognisant of the fact that many people have more than one card. And even though people have more than one card they would not be putting all of them to use. That is why this company is offering cards at a fee to ensure that whosoever comes on board should be a serious one,” he pointed out.