LIC housing finance (LICHF), a subsidiary of Life Insurance Corporation of India (LIC) is presenting itself as a strong contender in the race for a bank license.

LICHF managing director KK Nair said that the company is in a strong position to float a bank. Apart from being the second largest housing finance company of the country, it is also benefitted by being promoted by LIC, the largest financial institution of India.

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

The peculiar organisation structure of LIC has so far hindered in its way of gaining a bank license.

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.