In India’s financial services landscape, there are some lines companies can’t cross. Unless you are the State of Bank India (SBI), that is. With over a 200-year-legacy behind it, the government-owned bank has a $7.7 billion company in market capitalisation in SBI Cards and Payments Services Ltd., its credit card arm.
Only banks can issue credit cards. Loans can be issued by both banks and Non-Banking Financial Companies (NBFC). But an NBFC cannot issue credit cards. There’s no crossover and there’s no exception. Normally.
SBI Cards is an anomaly—it’s an NBFC that only issues credit cards.