LIC's credit card joint venture by year-end

The credit card joint venture between state-run major Life Insurance Corporation of India (LIC) and GE Money is expected to launch its first product by December 2008, according to Chief Executive Officer Hemant Bhargava.

There were speculations that the venture has hit a road block as GE Money, the global major in consumer finance, is also the partner of State Bank of India's credit card company, giving rise to conflict of interest. Bhargava, however, said the issue had been sorted out.

"Yes, the venture has been delayed. But we have sorted out those issues (conflict of interest). Currently, we are looking at human resources-related issues. We are planning to launch the card by the end of the calendar year," he said.

"We do not have a problem with GE Money's presence," he added. The card would be offered only to LIC's customers in the first year of its launch.

GE Money has a 30 per cent stake in the card venture, while LIC Housing Finance Company, LIC Mutual Fund and Corporation Bank have 5 per cent each. LIC will have 40 per cent in the company, which is capitalised at Rs 150 crore.

LIC is yet to take a view about the remaining 15 per cent stake.