Beware of depositing cash in LIC! Risk has increased, the business is stuck 30000 crore rupees

by Jeremy Spirogis
778 fine for drunk driving, 1100 for violation of traffic rules – New Year celebration

Guwahati

The risk in your deposited profit LIC is increasing because its NPA has actually doubled in five years to achieve 30000 crores. Being a public industry insurance provider, Life Insurance Corporation of India (LIC) is recognized as a symbol of trust, nevertheless now it really is under danger. Crores of men and women for the nation thoughtlessly spend a sizable element of their particular hard earned cash in LIC's schemes. But a number of situations in the last few years suggest that LIC reaches increased danger of big money reserves.

LIC has additionally been being employed as a troubleshooter when it comes to federal government because of its huge money reserves. It features acted to safeguard community organizations and financial institutions by purchasing all of them stocks. <! –

->
                 But today LIC's newest accounting has actually uncovered numerous surprising information. LIC normally seen becoming making the exact same mistake as being community financial institutions did by disbursing tens of thousands of crores of financial loans to your personal industry.

In the initial 6 months (April-September) for this monetary 12 months in other words. 2019-20, LIC's non-performing possessions ie NPA features increased by 6.10percent. This NPA is near the personal industry Yes Bank, ICICI, Axis Bank. These private banks, as soon as recognized for ideal asset high quality, appear to be troubled by rising NPAs in a changed environment.

LIC features provided financial loans a number of business organizations in the shape of term financial loans and non-convertible debentures (NCDs). LIC features possessions or money of over Rs 36 lakh crore. As on September 30, 2019, LIC's NPA has grown to Rs 30,000 crore. Its NPA features doubled within the last 5 years and has now risen up to 6.10% of this complete possessions. Earlier, LIC's non-performing possessions endured at 1.5 to 2 percent. Despite most of the competitors, LIC remains quite strong and makes up about about two-thirds for the advanced.

Leave a Comment