NEW DELHI: Advocating the need to ensure better fiscal management, Uday Kotak , the Vice-chairman and Managing Director of Kotak Mahindra Bank on Tuesday suggested a big-ticket measure of listing the Life Insurance Corporation of India ( LIC )."The government should look at listing its behemoth LIC, it can generate a lot of revenues" Uday Kotak said after a meeting with the Finance Minister Arun Jaitley . "Over the next few yeas the government should seriously consider listing of LIC. The kind of money government can raise by listing LIC is significant it can fund funding needs of public sector banks as well as fiscal deficit," he said.Kotak also said, "In order to maintain fiscal order the government should focus on KAREGA instead of NREGA ." "A big boost to financial savings through even modification and significant enhancement of the RGESS is needed," Kotak said. "Let us have a significant boost to small and medium businesses," he added.Finance Minister Arun Jaitley met top bankers of the country in a pre-budget exercise. The bankers offered suggestions on issues ranging from need for savings boost to a better system for addressing NPAs.Naina Lal Kidwai, HSBC India CEO said that the banks expressed need to raise resources to FM . "We discussed the NPA situation & forming of AMC for bad loans with FM." Bankers also demanded a higher recapitalisation amount and tax-free bonds for higher infrastructure funding.Concerned over rising bad loans, heads of banks and financial institutions suggested creation of National Asset Management Company which could act as a nodal agency to deal with the problem."There were some suggestions on setting up of National Asset Management Company," Financial Services Secretary G S Sandhu said after the pre-budget meeting with heads of banks and financial institutions with the Finance Minister. It will take over large non-performing assets of banks and help in revive companies ridden with bad debts."Various suggestions have been given. We will examine those suggestions and then we will see what all to be included in the budget," he said.Bankers also requested for issue of tax free bonds for development of infrastructure sector."There were suggestion on recapitalisation of banks, financing of infrastructure. All the public sector banks need capital. There were issues about infrastructure lending because that is the need of the day," Central Bank of India Chairman and Managing Director Rajiv Rishi said.Banks and insurance companies also sought tax benefit for their products.(With inputs from PTI)