SBI Credit Cards Posts Rs.186.61 cr loss

SBI Credit Cards has posted a loss worth Rs.186.61 crores for the quarter ending Dec 2007. Its non performing assets (NPA) amounted to a record breaking 16.28% the highest in the industry.

SBI and its partner GE Money had entered into a joint venture for the credit card business and issued over 3.5 million credit cards so far. An aggressive customer acquisition drive is said to have been the reason for this situation. Perhaps a poor screening process in issuing credit cards to qualified customers was the reason.

The losses have already taken a toll on the company’s CEO who is said to be on his way out and soon to be succeeded by someone else.

It is estimated that over 28 million credit cards are in circulation in India, and their market share is estimated to be: