Banking on its powerful national and international network, SBI chief MS Verma is confident of servicing at least 20 lakh cardholders in the next three years.

"SBI, with its unparalleled branch and distribution network across India, is well positioned to successfully launch its cards business," Verma said, adding that SBI Cards would be launched by September.

SBI has tied up with US-based GE Caps by forming two companies, one of which would process card applications and the other will be involved in marketing the credit cards.

The two companies are likely to become operational later this month as currently the bank is scouting for senior level officers in these joint venture firms.

GE Caps has already secured the necessary government approval for foreign investment participation in the two joint ventures andnow only a formal approval from SBI is pending.

As per the new RBI guidelines, banks do not require any prior permission from the apex bank to launch credit cards in the country.

A soft launch has already been done by distributing the cards to bank employees, SBI chairman said.

SBI's proposed range of products include credit cards, charge cards, stored value cards and smart cards.

SBI will hold 60 per cent of the equity of the marketing joint venture -- SBI Cards and Payments Services Ltd (SPICPSL) -- and the rest will be held by GE Caps.

In the second venture that would be known as GE Capital Business Process Management Services Ltd (GECBPMSL), SBI will hold 40 per cent equity. This company will handle the technological aspects and processing of the cards business.

To give its card an even wider reach and international recognition, SBI entered into an exclusive agreement with Visa International in June to call its card an SBI Visa Card.

Through this agreement, Visa will ensure SBI's success inthe cards business, and in doing so will also offer greater flexibility and choice in its products and systems offerings, sources in Visa said.

GE Caps manages over 80 million cardholders through private label cards for over 300 clients in 20 countries.