SBI, GE Money JV adds consumer finance

MUMBAI (Reuters) - State Bank of India, the country's top lender, and General Electric Co's GE Money will provide more consumer financial services, the two companies said on Wednesday, to tap rising incomes.

The two firms will extend the scope of their 10-year partnership, SBI Cards, to also include personal loans and credit insurance, for a bigger share of "one of the fastest-growing consumer financial services markets in the world", they said.

The venture comprises two entities: SBI Cards & Payment Services Pvt Ltd, which focuses on marketing and distribution of SBI Cards, and the back office GE Capital Business Processes Management Services Pvt Ltd.

"Both these entities would look at expanding the scope of their service offerings," they said in a statement, without specifying details.

GE Money has 40 percent in the first venture and 60 percent in the second, with SBI holding the remainder in both.

"India's rapidly expanding financial services sector offers several business opportunities and SBI will be pleased to exploit these opportunities in partnership with a global giant like GE, wherever possible," SBI Chairman O.P. Bhatt said.

The move was not related to GE Money's search for strategic investors for its personal and home loans units in India, a spokeswoman said.

Morgan Stanley is reviewing expressions of interest in these units and GE Money had said in March it wanted to close a deal within six months.