LIC may not seem to be happy that its investment is used to set up a competing business

India-based Axis Bank, engaged in retail and corporate banking, plans to enter in to the non-life insurance business, reported THE ECONOMIC TIMES.

The sources said that the non-life segment requires a high capital requirement, which is causing the bank to look at the non-life segment.

However, one of the bank’s main shareholder is Life Insurance Corporation (LIC), which may not be happy that the funds invested by it are used to build a competing business by Axis Bank, quoted the newspaper.

Unexpectedly, L&T, a professionally managed company where LIC is a major shareholder, has entered in to the non-life insurance business for the same reason.