INDIA’S LIC ENTERS CREDIT CARD BUSINESS

India’s largest insurer, the Life Insurance Corporation of India (LIC), is set to launch its first foray into the credit card business after announcing a September 2008 launch for its new joint venture. LIC will take a stake of roughly 40% in the business with a 30-35% stake to be taken by its principal partner GE Money India. LIC had originally announced a series of tie-ups for a credit card business back in September 2007 and had planned to launch in March 2008 but the plans were delayed due to refinements needed for its software platform. The announcement for the credit card business follows a statement by India’s Minister of Finance that LIC is also seeking to boost its premium income for 2008 with a series of overseas investments.