|SBI Cards & Payments Services Ltd. (SBICPSL), a credit card and payment service joint venture between SBI and GE Capital has shown its interest in the corporate card segment. The company sees a huge potential in the segment and the CEO, Mr. Kadmbi Narahari says would be a new vertical for growth this fiscal.
"We see a big market out there for corporate cards. We are leveraging all the GE and SBI relationships to reach out to more corporates," added Mr. Narahari. The company has so far contacted about 250 corporates this year. The focus on corporate segment comes due to the low cost compared to retail segment.
The company has also plans to include a special card for small and medium enterprises. The card could be used to make purchases for raw materials, working capital requirements, payment of bills, and even entertainment of senior executives. This card would be like a charge card, and the outstanding would only be allowed within the credit period.
"Our corporate card is what is called as purchase card in other countries. It will be a good working capital solution for SMEs. That is how we will be positioning this card. SMEs can manage their cash flows much better with this card and meet their monthly needs," said Mr. Sanjeev Jain,CEO, GE Capital Business Process Management Services (GECBP). GECBP is responsible for handling the technology end of the SBI Cards business.
The company is in talk with State Bank of India to make some kind of arrangement to offer cards over the credit limit given to the SMEs. Mr. Narahari, however stated that the growth in the corporate cards segment would not be on expense of the retail segment.