LIC ties up with GE money to float credit card company

Mumbai, Sep 5 (UNI) Country's largest insurance company, Life Insurance Company (LIC) today signed a Memorandum of Understanding (MOU) with GE Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Funds AMC to create a new credit card company. The parties aim to finalize definitive agreements by the end of October this year.

The new company will have its headquarters in the National Capital Region (NCR). LIC has appointed Mr Hemant Bhargava as CEO for the new venture. A joint team is being put in place with members from LIC and GE Money to take forward the new initiative.

The proposed venture will leverage LIC and Corporation Bank's brand and branch, ATM and sales distribution network, and GE Money's global and local expertise in credit cards, business management processes, and technology-driven platforms. The JV aims to become a major player in India's fast-growing credit card industry.

LIC Chairman T S Vijayan said, ''This new strategic JV brings excellent management skills, credit card experience and unparalleled distribution networks under one roof and we are looking forward to work with one another.'' GE Money (India operations) CEO Vishal Pandit added, ''The credit card market in India offers significant opportunity for growth. We look forward to leveraging our expertise in consumer financial services to help this partnership become a strong cards player in India.'' LIC is celebrating its 51st anniversary this year and aims to strengthen its relationship with its vast customer base by providing various value-added services such as credit cards. Through this JV, LIC aims to offer premium-payment facility to policy holders with their own credit card.

LIC had engaged KPMG to advise it on entry into the credit card business and the identification of JV partners.

UNI