Proposed Banking Foray: LIC HFL May Appoint a Consultant

LIC Housing Finance (LIC HFL) , a subsidiary of Life Insurance Corporation (LIC), may rope in a consultant to advise it on its proposed foray into banking business.

 Mr.V.K. Sharma, LIC HFL, Director and Chief Executive said, "We may rope in a consultant for our proposed foray into the banking business, if that is required. This will happen after the final guidelines on banking licence is out by the Reserve Bank of India. We have constituted our board level committee. Also, the company level committee is looking into the issue."

As per the RBI (Reserve Bank of India) draft norms, private sector entities or groups owned and controlled by Indian promoters with diversified ownership, which have a good track record for a minimum of  ten years, would be eligible to promote banks.
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