You'll have to wait longer for LIC cards
Life Insurance Corporation of India has said the launch of its credit card business - a proposed joint venture with GE - has been delayed. LIC is not expecting to issue its cards until the next fiscal.
By TNN |
MUMBAI: Life Insurance Corporation of India has said the launch of its credit card business — a proposed joint venture with GE — has been delayed. LIC is not expecting to issue its cards until the next fiscal.
LIC’s credit card initiative had been on the anvil for over a year. The corporation had earlier looked at bringing out its cards before end-December 2007. “It now looks like we will not be able to come out with our cards in the current fiscal,” said Mr Vijayan. He was speaking on the sidelines of the function to mark the launch of Corporation Bank’s invest shoppe, a distribution outlet for mutual fund and insurance products.
Corporation Bank is also a partner in LIC’s card venture. Three months ago, LIC had entered into a MoU with GE. In terms of the MoU, the two were to float a credit card venture where LIC would hold 40%, GE 35%, Corporation Bank 4%, LIC Housing 5% and LIC Mutual Fund 2%. The balance 14% was to be offered to financial investors who were prepared to bring money to the table by purchasing shares at a premium.
GE already has a credit card business in India along with State Bank of India, which is among the top three issuers in the country. Prior to its launch, there have been control issues between SBI and GE. The issues were sorted out after the partn
ers decided to float two separate companies — one which controls the assets and the other which controls the process. The process arm is controlled by GE while the assets are largely owned by SBI. “LIC likes to keep its controlling stake on all its ventures. We like to keep control on our money ,” said Mr Vijayan when questioned on the ownership of the business. He, however, denied any plans to split the business into a process and assets unit.
Speaking at the launch of Invest Shoppe, Corporation Bank chairman B Sambamurthy said commercial banking products were not enough to provide customers post-retirement solutions. Therefore, there was an opportunity for banks to distribute mutual funds and insurance policies, he added. The bank also has plans to introduce a wealth management business.
Mr Sambamurthy said after bringing all its branches under the core banking platform, the bank was in a position to introduce new channels. On the anvil is a new product e-purse , which enables account holders to carry their money on cellphones and use the same for secured tractions.
LIC’s credit card initiative had been on the anvil for over a year. The corporation had earlier looked at bringing out its cards before end-December 2007. “It now looks like we will not be able to come out with our cards in the current fiscal,” said Mr Vijayan. He was speaking on the sidelines of the function to mark the launch of Corporation Bank’s invest shoppe, a distribution outlet for mutual fund and insurance products.
Corporation Bank is also a partner in LIC’s card venture. Three months ago, LIC had entered into a MoU with GE. In terms of the MoU, the two were to float a credit card venture where LIC would hold 40%, GE 35%, Corporation Bank 4%, LIC Housing 5% and LIC Mutual Fund 2%. The balance 14% was to be offered to financial investors who were prepared to bring money to the table by purchasing shares at a premium.
GE already has a credit card business in India along with State Bank of India, which is among the top three issuers in the country. Prior to its launch, there have been control issues between SBI and GE. The issues were sorted out after the partn
ers decided to float two separate companies — one which controls the assets and the other which controls the process. The process arm is controlled by GE while the assets are largely owned by SBI. “LIC likes to keep its controlling stake on all its ventures. We like to keep control on our money ,” said Mr Vijayan when questioned on the ownership of the business. He, however, denied any plans to split the business into a process and assets unit.
Speaking at the launch of Invest Shoppe, Corporation Bank chairman B Sambamurthy said commercial banking products were not enough to provide customers post-retirement solutions. Therefore, there was an opportunity for banks to distribute mutual funds and insurance policies, he added. The bank also has plans to introduce a wealth management business.
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Mr Sambamurthy said after bringing all its branches under the core banking platform, the bank was in a position to introduce new channels. On the anvil is a new product e-purse , which enables account holders to carry their money on cellphones and use the same for secured tractions.
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