State Bank of India, the country's largest lender, and General Electric Co's GE Money today announced plans to enter consumer finance business as they take their strategic partnership to a new level of growth and expansion.

SBI chairman O P Bhatt and GE Money Asia president and CEO Yoshiaki Fujimori made the announcement after a meeting between the two.

SBI Cards, a joint venture between GE and SBI, the number 2 credit card in India, will continue to operate even as the the joint venture will appoint separate CEOs for the credit cards business and GE Capital business.

The SBI-GE Money joint venture has two separate divisions: SBI Cards & Payment Services Pvt Ltd, which focuses on the marketing and distribution of SBI Cards, and GE Capital Business Processes Management Services Pvt. Ltd, which handles back office business and the technology and processing needs of the JV.

GE Money has 40 per cent in the first venture and 60 per cent in the second, with SBI holding the remainder in both. SBI and GE Money would maintain the same ownership pattern in both ventures.

Diwakar Gupta, one of the top executives of the State Bank of India, will be the CEO of SBI Cards & Payment Services Pvt. Ltd.

SBICPSL hopes to better participate in the consumer finance business by including new products like personal loans and credit insurance. 

GEBPMSL will leverage the scale of its processing platforms to serve other providers in India, in addition to SBI Card's products and services.

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

"We are delighted to enhance the level of partnership with SBI.  This new structure enables both GE and SBI to continue to bring innovative financial products and services to India's growing consumer base. India offers GE a tremendous opportunity for growth and investment and our partnership with SBI will play a core role in our strategic growth plans going forward," added Fujimori.

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