Mumbai: Life Insurance Corporation of India (LIC) has defined clearly GE Money India, a subsidiary of one of the world’s leading credit services company, as one of the partners in its projected credit card venture.

LIC wants to leverage its 200 million base in order to tap chances in the credit card payment industry that in 2006-07 developed by 22 per cent to Rs 41,361 crore.

The other associates in the credit card business enterprise would include Corporation Bank and two LIC subsidiaries, LIC Housing Finance and LIC Mutual Fund. The partners have signed a memorandum of understanding (MoU) and plan to settle the authoritative contract by the end of October.

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

Hemant Bhargava, CEO of the proposed credit cards company, which will be based in New Delhi said, “We are now setting up a separate team for this business with members from LIC and GE Money to take forward the new initiative. The exact features of the cards will take some time to finalise.”

GE Money is one of the world’s top credit card issuers with over100 million cards in use in more than 36 countries. The planned venture will leverage the LIC and Corporation Bank’s strong brand and extensive branch, ATM, and sales distribution network.

It will be inspired by GE Money’s international and local proficiency in credit cards, business management processes, and technology-driven platforms.

Bankers notice that though the grouping comprises strong partners, it is a late participant in this violently competitive industry.

GE Money is already a strategic partner in SBI Cards, which is the second largest credit card issuer with more than four million cards issued, though way following ICICI Bank that has a credit card base of more than seven million.

T S Vijayan, chairman, LIC said, “This partnership brings excellent management skills, credit card experience, and unparalleled distribution networks under one roof and we look forward to working with one another.”