Indian public sector lender IDBI Bank, in collaboration with Life Insurance Corporation of India (LIC), is set to roll out a co-branded credit card, reported The Hindu BusinessLine.
Scheduled to be launched later this year, the credit card will be offered to LIC customers, agents, as well as its own and subsidiaries’ staff.
IDBI Bank executive director Jorty Chacko was quoted by the report as saying that the bank will partner with LIC Credit Cards Services (LIC CSL) to launch the co-branded credit card.
LIC CSL, a wholly-owned subsidiary of LIC, has already been issuing credit cards under co-branded/white label pacts with Axis Bank and Corporation Bank.
Chacko told the publication that LIC’s 290 million policyholders, 1.18 million agents, and 112,000 staff provide a huge business opportunity to cross-sell credit cards, home loans, and other deposit products.
According to LIC’s 2017-18 annual report, LIC CSL had 206,681 credit card customers at the end of March last year. At present, the bank’s credit card user base is around 35,000.
LIC acquired a 51% stake in IDBI Bank for approximately INR216bn ($3bn) this January. Before that, LIC had a 10.82% holding in the bank.
Currently, the Government of India owns a 46.46% stake in IDBI Bank.