LIC to partner Corpn Bank in credit card foray

The government-owned Life Insurance Corporation (LIC) has finalised Corporation Bank as a partner for its credit card foray and is in talks to rope in other players to manage the venture. The Mangalore-based Corporation Bank will only be an investor in the card venture.

The insurance behemoth will hold a "majority" stake in the card company with Corporation Bank expected to hold up to 20 per cent stake, said sources. LIC holds 26 per cent stake in the Mangalore-based Corporation Bank.

A senior LIC official said, "We will have a controlling stake in the card venture. Six to seven companies have shown interest by writing to us, but we have not decided the strategy."

LIC is interested in holding a majority stake in the venture, but owing to regulatory glitches it is likely to hold around 49 per cent stake, said sources.

Corporation Bank has given an in-principle concurrence to own 20 per cent stake in LIC's credit card venture.

The bank will, however, not participate in the management of the venture as it has launched its own international credit card earlier this month.