|SBI Cards & Payments Services Pvt. Ltd. (SBICPSL), a joint venture between State Bank of India and GE Capital is looking to increase its stronghold in credit cards market by setting a target to issue one million credit cards by 2014-15.
Currently the company is the second largest issuer of credit cards behind HDFC Bank. Mr. Kadambi Narahari, CEO SBICPSL also stated that penetration of credit cards is very low in India, compared with Brazil and China which have about 200 million credit cards each, India accounts for a mere 18.4 million.
During the previous quarter, credit cards spending touched an all time high, but still average spending ($ 755) is much less compared with Australia ($ 3,352) and Thailand ($ 2,084).
The company is hoping to capitalize on Tier II and Tier III cities and also take benefit of the increasing penetration of internet to grow its business by 3-4 folds by FY15. Also, its co-branding arrangements with IRCTC, and with other lenders like Karur Vysya Bank, Oriental Bank of Commerce and Bank of Maharashtra has given a boost to its ticketing and instant payment business.
At present, SBICPSL has a customer base of 2.3 million customers adding 50,000 cards monthly, while the market leader HDFC issues 80,000 cards per month.