SBI Shifts Focus to Corporate & SME Credit Cards

India’s fourth largest Credit Card issuer, SBI Cards with a base of 2.18 Mn credit cards has realigned its business strategy. SBI will now focus on more profitable customers, which is Corporates and SMEs.

SBI Corporate Credit Cards
The cost of servicing a corporate card is much lower than a retail consumer credit card. Currently Corporates account for insignificant number and hence will be the future growth vertical. So far SBI has added 250 Corporate Accounts. They will also offer SBI Personal Cards with host of benefits for Executives of Corporate Clients. SBI cards division is also in talks to its Parent company to secure the credit issued on Cards by accessing the Cash Credit line which the parent bank provides as a part of Overdraft facilities on Current Accounts.

SBI Credit Cards for SMEs
Encashing on its Partner GE Capital’s core business knowledge of running a Charge Card in the Western Market, SBI Cards will issue SBI SME Cards. This can be used to pay off utility bills, purchase raw materials, etc. Since SMEs are classified as riskier borrowers, these customers have to square-off all the charges on the card at the end of billing cycle. No rollover will be permitted.

Unlike HDFC, which has most of its business coming from retail segment who are also its banks account holders, SBI GE Cards plans to make Corporate and SME the bigger chunk for its bottom-line.

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