CardBhai has reliably learnt from his insiders that Corporation Bank has joined hands with GE Money India, LIC Housing Finance and LIC Mutual Fund to sign a MOU with Life Insurance Corporation of India to create a new credit card company that would leverage the strengths of each company. The parties aim to finalise the definitive agreements by end of October 2007.
This joint venture is terrific because it explores the strengths of each of the partners. LIC has the largest consumer base in the Indian Insurance / Financial market, GE Money has the know how to run a credit card business while they need a bank to finance, which is being fulfilled by Corporation Bank.