LIC's gross NPA in debt instruments investment increased 7.49 percent

Mumbai, Ta. 26 February 2020, Tuesday

While Life Insurance Corporation of India (LIC) is preparing to launch Initial Public Offering (IPO) in FY 7, the ratio of gross non-performing assets (NPAs) to this insurance company's Debt Portfolios has risen to 5 percent on December 2. Which was 6.4 percent in the same period last year.

This is the highest prevalence of gross NPA in the Debt Portfolio of LIC. Against this, its competitors' gross NPAs are zero. At the end of December, LIC had a total balance sheet of Rs 1.8 lakh crore, though its investment and its returns will be scrutinized.

In terms of banks, SBI's gross NPA ratio at the end of the December quarter stood at 8.5 percent and ICICI Bank's 8.5 percent.

As a life insurance investing in long-term equipment, the market will closely monitor the performance of the equipment, said one analyst.

During the period from April 1 to December 1, LIC invested Rs 5 crore in the entire fiscal year against an investment target of Rs.

In addition, LIC has invested Rs 1.8 lakh crore in government securities, which has surpassed the target of Rs 1.8 lakh crore. The majority of LIC's investments are in government securities, equities and corporate debt.

The total investment assets of LIC at the end of December 1 stood at Rs 2 lakh crore, up from Rs 1 lakh crore a year ago.

The government has announced the disinvestment of LIC as it looks at the next fiscal year's budget. The government intends to sell ten percent of its stake in the insurance company.