An example you need to work on it, this not as per your logic...

It takes around less than 20 mins to insert records. Optimize the columns and SP, the insertion time will be less.

USE [MyDB]
GO


/****** Object:  Table [dbo].[CardMaster]    Script Date: 02/06/2011 21:34:41 ******/
SET ANSI_NULLS ON
GO


SET QUOTED_IDENTIFIER ON
GO


SET ANSI_PADDING ON
GO


CREATE TABLE [dbo].[CardMaster](
	[id] [numeric](18, 0) IDENTITY(1,1) NOT NULL,
	[SerialNo] [varchar](max) NULL,
	[CardID] [varchar](max) NULL,
	[SerialType] [varchar](2) NULL,
	[SerialAmt] [numeric](18, 0) NULL
) ON [PRIMARY]


GO


SET ANSI_PADDING OFF
GO

SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER ON
GO
CREATE PROCEDURE CardMasterUpdation 
	@inval	varchar(2),
	@inamt	varchar(max)
AS
	declare @SerialNo as varchar(max),
			@CardNo	as varchar(max),
			@cnt numeric(18, 0),
			@Flag numeric(18, 0)
BEGIN
	-- SET NOCOUNT ON added to prevent extra result sets from
	-- interfering with SELECT statements.
	SET NOCOUNT ON;

	BEGIN
		SET @Flag = 1
		WHILE (@Flag <= 30000)
			BEGIN
				SELECT @CardNo = SUBSTRING(CONVERT(varchar(255), NEWID()), 0, 7)
				IF NOT EXISTS(SELECT @CardNo FROM dbo.CardMaster WHERE CardID = @CardNo)
					BEGIN
						SELECT @cnt = COUNT(1) + 1 FROM dbo.CardMaster WHERE serialType = @inval;
						SET @SerialNo = @inval + @inamt + '0' + cast(@cnt as varchar)
						INSERT INTO dbo.CardMaster (SerialNo, CardID, SerialType, SerialAmt) VALUES (@SerialNo, @CardNo, @inval, @inamt)
						SET @Flag = @Flag + 1
					END
			END
	END
END
GO

exec CardMasterUpdation 'RH', '20'