The Foreign Investment Promotion Board (FIPB) has deferred giving nod to the GE Caps proposal to bring in its share of equity. FIPB is expected to take up the application in two or three weeks after it gets Securities and Exchange Board of India's (SEBI) comment on the application.

When contacted, State Bank's chief general manager (products development) Janki Ballabh said, the delay in the FIPB clearance is procedural and the board's nod is likely to come in the next couple of weeks. "We have already covered a lot of ground. The pilot project is likely to be launched in the next few weeks," Ballabh said.

GE Caps' application with FIPB is for bringing in Rs 40 crore towards 40 per cent stake in SBI Cards and Payment Services Ltd and Rs 30 crore to pick up 60 per cent stake in GE Capital Business Process Management Services Pvt Ltd. (GE-CBP).

The State Bank holds60 per cent stake in SBI Cards & Payments Securities Pvt Ltd which has an equity base of Rs 100 crore. The second subsidiary -- GE Capital Business Process Management Services Pvt Ltd -- where GE Caps holds 60 per cent has an equity base of Rs 50 crore.

GE Caps has proposed to increase its stake in GE-CBP to 75 per cent after three years of the launch of the first payment product by the credit card company. GE-CPB, which has a total capital of Rs 50 crore, will handle the processing, technology and software development of the credit card business, while the credit card business will be run by SBI Cards and Payment Ltd, which has a capital of Rs 100 crore.

SEBI opinion has been sought on the issue as State Bank is a listed company. GE Caps is reported to have already replied to a set of queries from SEBI on the nature of its investments and future plans regarding any additional joint venture partners for its ventures.

GE Caps already has a major presence in India through it NBFC operations and has majorplans for fast expansion through mergers and acquisitions. After taking over north-based SRF Finance last year, GE Caps is reportedly in talks with many other finance companies for possible takeovers.