Being a public sector insurance company, Life Insurance Corporation of India (LIC) is considered a symbol of trust. Crores of people of the country have blindly invested a large part of their hard earned money in LIC's schemes. But several incidents in recent years indicate that the risk of large cash reserves with LIC is increasing.
LIC has also been working as a troubleshooter for the government due to the huge cash reserves, it has saved the public companies and banks by buying shares. But seeing the latest bookkeeping of LIC reveals many shocking information.
LIC is also seen to be making the same mistake as public banks have done by disbursing thousands of crores of loans to the private sector. In the first six months (April-September) of this financial year i.e. 2019-20, LIC's non-performing assets ie NPA has increased by 6.10%. This NPA is close to the private sector Yes Bank, ICICI, Axis Bank. These private banks, once known for the best asset quality, seem to be troubled by rising NPAs in a changed environment.
In the second quarter of 2019-20, Yes Bank's gross NPA reached 7.39 percent, ICICI's NPA 6.37 percent and Axis Bank's NPA reached 5.03 percent.
Rahul Gandhi expressed concern
Congress leader Rahul Gandhi has also tweeted on Wednesday expressing concern about this. He said that crores of honest people invest in LIC, because they have faith in it. But the Modi government is hurting LIC and tinkering with its future and destroying people's trust.
Being a public sector insurance company, Life Insurance Corporation of India (LIC) is considered a symbol of trust. Crores of people of the country have blindly invested a large part of their hard earned money in LIC's schemes. But several incidents in recent years indicate that the risk of large cash reserves with LIC is increasing.
Mistake like banks!
LIC has also been working as a troubleshooter for the government due to the huge cash reserves, it has saved the public companies and banks by buying shares. But seeing the latest bookkeeping of LIC reveals many shocking information.
LIC is also seen to be making the same mistake as public banks have done by disbursing thousands of crores of loans to the private sector. In the first six months (April-September) of this financial year i.e. 2019-20, LIC's non-performing assets ie NPA has increased by 6.10%. This NPA is close to the private sector Yes Bank, ICICI, Axis Bank. These private banks, once known for the best asset quality, seem to be troubled by rising NPAs in a changed environment.
In the second quarter of 2019-20, Yes Bank's gross NPA reached 7.39 percent, ICICI's NPA 6.37 percent and Axis Bank's NPA reached 5.03 percent.
Congress leader Rahul Gandhi has also tweeted on Wednesday expressing concern about this. He said that crores of honest people invest in LIC, because they have faith in it. But the Modi government is hurting LIC and tinkering with its future and destroying people's trust.
