Life Insurance Corporation of India (LIC), the largest life insurance company in India, has entered into an agreement with state-owned Corporation Bank to launch credit cards in the country.

LIC intends to launch the business through its wholly owned subsidiary, LIC Cards Services Limited, which will manage all aspects of its credit card venture. The company already has taken approval from Government of India to form a wholly owned company for this purpose.

Under the arrangement, LIC Cards Services Limited, will gain access to LIC and Corporation Bank's strong brand and extensive branch, ATM, and sales distribution network throughout the country. 

LIC has been planning to bring out its credit card with aim of strengthening its relationship with its vast customer base, strong brand and wide distribution network. 

Through this new Company, LIC aims to offer premium-payment facility to policyholders with their own credit card.