Should LIC enter into banking space in India??

A conserved outlook would never promote growth.Diversification is the old law and diversifying into related areas is not harmful.Of Course, LIC has advantage in terms of strong base,history, trust and experience. Why to let foreign banks conquer our market, when trustful Indian firms can serve the masses and earn capital for the country.What LIC needs to follow is a slow and steady approach,not an aggressive one,along with keeping its focus on the core area. No harm in Strengthening the strengths,and making use of opportunities.LIC can develop as a bank of masses.

I think LIC should enter the banking sector as LIC has a brand equity and respect that is needed to be a sucessful player in banking sector. Indian baking sector is underdeveloped and there is ample space for more large players to enter the space. LIC contron more than 60% of market share in life insurance and has market capitalization of more 10lakh crore rupees moreover LIC  reach in ruaral areas where penetration of banking sector is very small.

Leena, Its really a beutifull thought.

With the increasing economy size, Indian needs more and more banks. We dont see future new PSU bank other then LIC, the scope for LIC is best in the sector. The marketing and installation cost shall be minimal.

Why private bank only take the dominanace in the future Indian Market ?

I support you, LIC must get a bank licenses.

Why not? LIC has also the right to taste the banking services..

Yes. Why not ? LIC must enter in Banking sector. With more than 50 years of experience now it's time to start bank. So that they can serve india better.

Yes. It should definitely. It should also try to lend more money into country's projects and help the business units to occupy more share into the international arena

Yes they should enter into banking industry. When almost all banks have entered into insurance sector why not LIC enter into banking. Moreover they are financially sound and have rich tradition,culture and  strength

LIC in Banking sector will also be welcomed by the industry and people. Its Assets and the know how of Indian Industry will always support it, in the banking sector. But rather concentrating on Urban or Semi urban market which is already tapped by our country's great PSU's and Private banks, LIC if entering into Banking it should concentrate on Rural Market to help increase the Financial Inclusion which is even government's target. For LIC to win the Rural Market will be little easier compared to other Banks as it is respected Brand across the country from Remote to Metro. More people under the banking system will help government and RBI to control the liquidity and cash flow in the country. So, I would say LIC as a Big Financing House is always welcome in Banking Sector but it should not compromise on its core sector.

Yes they should with such a great reach and govt backing the company is sitting on gold mine

i support  leena argument.  Much experience is gained by the LIC in treasury operations and asset management services.  Which is the main activities in fund management, and this is the important activity in a banking also.  Fund mobilisation can be done in any way with less experience maintenance is important.  LIC can do better in banking but it is their board decision.

but in my view players in banking sector is considerable in india, in this scenario sharing of pie will not make any difference at macro level, but it can create good job opportunities.  LIC should diversify by entering in rural general insurance and rural banking would benefit country and rural people too.

LIC entering banking space can be welcomed, provided their core competence is not compromised. Though LIC have matured as the prime insurance provider in the country, the insurance sector is still in the developing stage only and much is expected from LIC towards.

big yes, they are the most trusted in insurance i think.......

She is just telling LIC can enter in to Banking..and not speaking about the Infrastructure how to be made. Dont hv to depent on AGENTS & BROKERS FOR GENIUNE BUSINESS...

The Insurance policies created by English people when they were ruling us to loot more money from public.

Previously,if companies needs to generate funds,normally they take options to Sell equities,Bonds,Shares.In this they have to share the benifit with investers.

Now a days,all the MNCcompanies started own Insurance companies to generate Funds,collecting money from Public,using for their own other companies.In this the Investers have to pay "MONEY MANAGEMENT CHARGES" to Insurance companies as well.

Ultimately this is one of the Best way of LOOTING PUBLIC MONEY.

If the INSURANCE PRODUCTS ARE GENIUNE, WHY THEY ARE NOT SELLING DIRECTLY??? WHY SELLING THROUGH UNPROFESSIONAL AGENTS & BROKERS AND SHARING UPTO 40% COMMISSION WITH THEM??? Can anybody tell here,the insurance agenst speaking truth???

Not even 2% people facing problems of Sudden demise and other causes.But, the Insurance companies are creating fearness with people and LOOTING MORE MONEY.

All the private Insurance companies has to be banned.

Ofcourse,the Government organization of LIC Should Enter in to banking sectors as well.

probably the most difficult question which has a easy answer Yes because LIC is just not a compnay but a trusted inclusive brand for every indian known till date. Therefore it just requires a winning strategy and divest a few million in starting bank operation.

As the Indian Economy is expected to grow 7-8% , the financial sector would reciprocate a growth of 24% , i.e 3 times the GDP Growth.  In reference to this Honorable FM & RBI's move to induct the NBFC,s & other financial institutions is appreciative.  The estimated increase in financial requirements is triggered by an expected spontaneous growth in sectors like Infrastructure , construction & pharma .

The government's focuses  to Stimulate  the agriculural sector especially small farmers & traders through MICRO FINANCE Options , to eliminate the Money Lenders , enhences a wider oppurunties for a Banker .

Thus entry of LIC  the Lagrest Insurance Company in India , would to a positive signs to India . The Pros for LIC  may be :  ALREADY ESTABLISHED MARKET BOTH RURAL & URBAN , TRUST -INBULID COMPANY .  Meanwhile corporate giants like Tata, Brila & Reliance also are eying thier prospects . 

"A GROWTH FIRM  ALWAYS FOCUS ON DIVERSIFICATION"

Leena

Yes I think LIC should enter Banking space.Even in the crisis scene,SBI held firm and LIC will be the same as SBI.It doesnot even need to open the branches.Agents can act as Hunters(Business Development) to get the new business.It is like the platform is ready ,only Yes button has to be clicked.It will do wonders to the rural markets and Tier 3/small cities where people trust LIC like anything.The deposits even are not needed as the premium receipts are so high.

If it happens so ... dumped money will be utilized in a better way .. it is also trusted name in this sector

definitely!!!!!!!!!!! LIC very old and trusted company in term finance insurance etc..   giving entry into banking sector not a bad idea.. and since it has established its name and brand in market.

Yes, LIC can also enter into Banking sector. Many bank, now-a-days, started working on insurance sector and they are also getting success. In this manner, LIC can also enter into the banking sector. As a result, there is no separate sectors like insurance sector and banking sector. 

They have enough reach in terms of branch network, human resources and brand image. This move will be helpful to both LIC and its policy holders. In my view they should also expand their network slowly in to Asian markets and later to Europe and USA

Why not? When Banks are entering into Insurance Business, Insurance companies can also enter into Banking Business, they have the expertise, the acumen, the marketing ability, understanding of the market, they should enter

With insurance share of LIC increasing more I share the sentiments as yours as why LIC has not entered into the banking sector. Presumably the reasons are 1. Focus on insurance as prime business, remember the business is procured by agents who work on commissions 2. Insurance is a serious business as IRDA doesn't allow the capital to be divested into entering a new business 3. Will have to handle two regulatory bodies, which is not permitted. But may be in future we an see LIC banks, will be profitable by any standards by its robust management