SBI Cards, the credit card business of the largest lender of the country, State Bank of India in partnership with GE Capital has registered for turnaround and is in need for capital infusion from SBI and GE Capital.
"SBI Cards has become the only standalone card company in the country to register profits. The company has turned profitable in the current year as against our expectations of achieving breakeven in March quarter of 2011," State Bank of India's Chairman, O P Bhatt said.
October results showed 30% rise to Rs 570 crore. In October 2008, SBI cards added customers to itself in bulk which finally led to heavy losses in 2008-09 period.
"The major learnings from the losses were that we should never underprice risk and should not have a business model based on penalties," SBI's Deputy Managing Director, Diwakar Gupta, said.
"We are working on an aggressive four-year growth plan after two years of business consolidation that has helped the company become profitable again," Bhatt said.