Life Insurance Corporation scotched speculation of setting up or acquiring a bank on Wednesday but said it plans to enter credit cards business and manage pension funds.
"No. We have no intention of owning a bank as it is a highly specialised area," LIC Chairman T S Vijayan told PTI.
The assertion came amid reports of the country's largest life insurer trying to acquire a major stake in UTI Bank to foray into banking.
LIC, however, has strategic partnership with Corporation Bank owning 27 per cent stake in it. It has substantial shareholding in number of other banks, but does not have controlling stake.
Vijayan said LIC would foray into health insurance, pension management and credit cards business.
The corporation is understood to be in
talks for entering the business with GE Capital Services, the largest global issuer of private lable credit cards. There is a possibility of Corporation Bank being roped into it.
GE already has a tie-up with India's largest commercial bank, State Bank of India, for the credit card business.
LIC wants to enter the business as the potential is huge considering the credit card spend as a proportion of total expenditure.
Vijayan said LIC has created a separate department for health insurance in its corporate set-up and the department was making efforts to come out with innovative products.
"We would be coming out with our initiative during the later part of the year. We are building a strong marketing network and technology platform for the new health insurance product."