NEW DELHI: The country's largest lender State Bank of India (SBI) today said it will increase its stake in SBI Card to 74 per cent by June end. "Stake will be increased by first quarter of next financial year...there are few regulatory issue that is being sorted out," SBI chairperson Arundhati Bhattacharya said at the launch of SBI Card Unnati here.The board of SBI has already given approval for hike of the bank's stake in its two credit card joint ventures with General Electric Company to 74 per cent.The bank has approval to infuse Rs 1,160 crore in the two JVs -- SBI Cards and Payment Services Pvt Ltd (SBICPSL) and GE Capital Business Processes Management Services Ltd (GECBPMSL)-- through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74 per cent.Asked about remaining 26 per cent stake, she said, the decision has to be taken by GE. "Within next one month there should be finality on the remaining stake sale," it said.The American company seeks to exit SBI Cards.SBI currently holds 60 per cent stake in SBICPSL and 40 per cent in GECBPMSL. "To encourage adoption of credit cards and facilitate expansion in the reach of digital payments, the SBI Card Unnati will be offered free, at zero annual fee, for four years," she said.It will cater to the credit card requirements of new users and especially to those without any prior credit history, she said, adding, "we must credit empower our citizen and this is an initiative towards that. "The nation is progressing towards becoming a less cash economy for which a slew of digital initiatives have been made available to the population at large, she said.On the back of its features, she said, the Card company expects 300 per cent growth within one year.

Source: Economic Times March 28, 2017 16:03 UTC