SBI Cards and Payments today received an in-principle approval from the Securities and Exchange Board of India for its proposed initial public offering, a senior State Bank of India official said.

"This is the first approval, and now we will file the updated draft red herring prospectus for SBI Cards which will get converted into the final RHP (red herring prospectus). We hope to close the offering in the month of March subject to regulatory approvals," the official added.

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The official declined to share details on the size of the issue. SBI Cards had filed its draft red herring prospectus in November.

On the National Stock Exchange, shares of SBI ended 1.8% higher at Rs 324.35.

The payments solutions provider aims to raise Rs 5 billion via fresh share issue.