LIC ties up with GE Money for credit card joint venture

Life Insurance Corporation of India (LIC) signed a memorandum of understanding (MoU) with GE Money India, a subsidiary of the US-based financial services, Corporation Bank and LIC subsidiaries - LIC Housing Finance (LICHFC) and LIC Mutual Fund, for a credit card joint venture. The partners plan to finalise the definitive agreement by the end of September, 2007.

As per the MoU signed, LIC would own 40 per cent, GE Money 30 per cent and Corporation Bank, LIC Housing finance and LIC Mutual Fund will own 5 per cent each. LIC plans to sell the remaining 15 per cent stake in the proposed venture to financial investors.

LIC has a 200 million base and plans a presence in the credit card payment industry, which in 2006-07 grew by 22 per cent to Rs 41,361 crore. GE Money is already a strategic partner in SBI Cards, a subsidiary of State Bank of India (SBI).