:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

LIC HOUSING WANTS LICENCE TO BANK, MD MAKES A CASE

LIC Housing Finance, an arm of Life Insurance Corporation of India, has made a strong case for a banking licence for itself.

 Speaking to newspersons at an event to mark a distribution arrangement with United India Insurance , LICHF managing director KK Nair said his company was in a strong position to promote a bank. LICHF, besides being the secondlargest housing finance company, also has the advantage of being promoted by Life Insurance Corporation — the largest financial institution with over . 10 lakh crore of assets.

 “If ,under the final guidelines, we are eligible to apply, we will certainly apply for a banking licence,” said Mr Nair.

 LIC has been seeking a banking licence for long, but its main hindrance was the fact that it has a peculiar organisation structure. Almost all of LIC’s assets belong to its policyholders and it does not have any significant funds by way of share capital. Insurance norms prevent the corporation from investing more than 10% of its capital in a single company.

 LICHF is registered as a finance company, carrying on the business of housing finance. In its discussion paper on granting new licences for banks, RBI has said one of the options was to allow finance companies to convert into banks. If LIC Housing Finance were allowed to convert itself into a bank, it would need to meet RBI guidelines on statutory liquidity ratio requirements and cash reserve requirements .

 Besides extending home loans, LICHF has got into the business of distributing financial products through a wholly-owned subsidiary — LICHFL Financial Services. The distribution arm sells life insurance , mutual funds and credit cards, in addition to home loans.

  LICHFL Financial Services entered into a distribution arrangement with Chennai-based United India Insurance Company, whereby it will exclusively sell non-life products such as homeowners’ insurance, health insurance and auto insurance products of United India.

 Announcing the tie-up in Mumbai, United India chairman G Srinivasan said he expected the distribution company to bring in . 1,000 crore of premium income. He added that in addition to the company’s 33 bancassurance partnerships and 100 corporate agents, he planned to increase the number of agents to 100,000 by the end of FY12.

Posted by C.B.O.A., A.P.

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