The exact number of shareholding of SBI in MasterCard will be known after receipt of quarterly membership reports submitted by all membership banks for the quarter ending June 30, 2005.
"Based on the bank's large number of ATM-cum-debit cards and volume of business being handled on their platform, the bank is likely to receive a good number of shares from MasterCard," SBI informed the bourses on Friday.
SBI had tied up with MasterCard for launching Banks Deposit Access Programme or ATM-cum-Debit cards on their Maestro and Cirrus platform from November 13, 2002.
The proposal to offer stake to SBI follows MasterCard's decision to convert itself from a membership association to a private share company in June 2002, through a new holding company, MasterCard International.
Pursuant to their bylaws, MasterCard will re-allocate their common stock among the eligible shareholders in connection with each other shareholder's global proxy contribution for the 12 months period commencing from July 01, 2004.
Following the re-allocation, the common stock of MasterCard will be tradable among their principal and associated membership, subject to certain limitation set forth in the bylaws of the card major, which will be communicated to the member banks at a later date.
