After banks, LIC's NPAs now rose by 8.17 per cent

New Delhi 31st July 2020 Friday

After banks, it was learned that LIC's NPAs (non-productive assets) have also increased significantly. NPAs grew by 8.17 per cent in 2019-20. LIC had total assets of Rs 31.96 lakh crore. There was a slight increase in the last financial year. Last year, LIC's assets stood at Rs 31.1 lakh crore. In comparison, LIC's assets increased marginally in 2019-20. This increased the risk to the man's property.

A senior LIC official, speaking on condition of anonymity, said the economic downturn also affected LIC's assets. Defaults and downgrades increased, especially in the corporate sector. This adversely affected LIC's assets. As on March 20 this year, LIC's NPA stood at Rs 36,694.20 crore. Last year, the NPA was Rs 24,772.2 crore. On September 30, 2019, LIC's NPA increased to Rs 30,000 crore. The official opined that NPAs have also increased in the last few years due to the sharp rise in defaulters in the corporate sector.

In fact, 60 to 70 per cent of LIC's total assets were held in government securities. The remaining amount was invested in equity shares and in the form of corporate debt. In 2019-20, LIC saw a 25 per cent growth in premiums over the previous year, compared to 11.64 per cent in private companies.

LIC's revenue from premiums increased by 12.42 per cent. LIC's premium income now stands at Rs 3.79 lakh crore. In fact, like banks, LIC was hit hard by corporate sector loans. "There are big names among the companies that do not repay loans from LIC," the official said.