Axis Bank to handle LIC credit card business

Life Insurance Corporation of India (LIC) has entered into a tie up with Axis Bank regarding its credit card business.

LIC has been in the credit card business where they provide credit cards to their policy holders, for 2 years now. The company is in an existing tie up with Corporation Bank. But this arrangement is not going too well with certain reports saying that Corporation Bank is not able to deal with such huge numbers.

So far the Corporation Bank has issued 30,000-35,000 credit cards to LIC policy holders. And LIC has a 26% stake in the bank as well. The bank is now worried about their place in the new deal.

This would be wonderful deal for the new bank, Axis Bank can earn a neat profit from this venture and a stable source of a significant amount of revenue for many many years to come.

Any business or tie up with LIC always involves millions of accounts. It will be a huge pressure on the current resources of Axis Bank. But the pressure will be a bit reduced due the recent expansion drives by the bank. More offices will be opened and more folks hired. Seems like the good times are here to stay for Axis Bank.

**Image courtesy IndiaInfoline.com