LIC Housing Finance, the home-loan arm of LIC, has decided to apply for a banking licence. LIC HFL’s board has cleared a proposal but other modalities like setting up a non-operative financial company (NOFHC) are still being discussed.
After the RBI had issued final norms for bank licence applications in February, LIC’s then chairman, D K Mehrotra, had asked LIC HFL to look into the guidelines and, if found favourable, the company would move ahead.
The board of Tourism Finance Corporation of India (TFCI) has taken approval for applying for banks license. Other prospective applicants for the bank licence are Shriram Group, Religare Enterprises, IDFC and Bajaj Finance, to name a few.
