LIC delayed its credit card launch

Life Insurance Corporation of India (LIC) has delayed its credit card launch. It is not expected to issue its credit card until the next fiscal year. LIC had proposed a joint venture with GE Money and Corporation Bank to enter credit card business. It was looking to launch the credit card before the end of 2007.

Three months ago, LIC had entered into a MoU with GE and Corporation Bank where LIC would hold 40%, GE 35%, Corporation Bank 4%, LIC Housing 5% and LIC Mutual Fund 2% of its credit card venture. The balance 14% was to have been offered to financial investors who were ready to bring in funds for business by purchasing shares at premium.

GE already has a credit card business along with SBI in India. Before starting off on this joint venture, GE and SBI had issues on management which was sorted out by floating two separate companies. One,which controls the assets and the other which controls the process. LIC, on the other hand, would like to keep a controlling stake in all its ventures.