Incorporated in 1991, SBI Factors, a subsidiary of State Bank of India is the first factoring company to be set up in India. SBI factor provides the domestic and export factoring services. SBI factor owns 11 branches. The company has shown tremendous results in all parameters in its financial year 2007-08. During the fiscal 2007-08, the operating profit grew to Rs 406.9 Million from Rs 276 MIllion in the last fiscal. Net profit of the company stood at Rs 283.8 Million against Rs 131.7 Million in 2006-07. It attained the turnover to Rs 64786.90 Million against Rs 46758.1 Million a year back. The average asset level has increased to Rs 129600 Million from Rs 9671.4 Million in the last fiscal.

As,many Indian companies are carrying out mergers and acquisitions as a growth strategy to gain maximum profit. SBI Factor has also moved to acquire the Global Trade Finance Limited (GTF) , to add more value to its assets. In 2001, the collaboration between Exim Bank (Export Import bank of India), West LB Germany and IFC, Washington (the private sector World Bank) took place and they promoted the factoring company GTF. It is the largest factoring and forfeiting company. It intends to be the leader of export and import solution provider in India with good quality services. GTF is also a member of FCI (Factor Chain International) a global association of international factoring. The company has posted an excellent performance in its financial year 2007-08. Turnover for the fiscal 2007-08 has increased by 79% to Rs 1, 11,237 Million over the last fiscal to Rs 62,138 Million. During the fiscal 2007-08, the net profit of the company raise to Rs 736 Million against Rs 289 Million a year back.

The merger process for the two flourishing companies SBI Factors and GTF has begun and the merged unit will come into operation by next year. The company SBI factor believes, merger would prove fruitful in all parameters. It is aiming that merger would result in the increase of total asset value by the estimated amount of Rs 70 Billion and export business to reach Rs 2.8 Billion by the end of March 2009. This would also lead to 80% market share in factoring. It is also in talks with five foreign companies for forfeiting services.