The danger in your deposited cash in LIC is growing as a result of its NPA has doubled in 5 years to succeed in 30000 crores. Being a public sector insurance coverage firm, Life Insurance Corporation of India (LIC) is taken into account a logo of belief, however now it’s beneath risk. Crores of individuals of the nation blindly make investments a big a part of their hard-earned cash in LIC's schemes. But a lot of incidents in recent times point out that LIC is at elevated danger of huge money reserves.
LIC has additionally been working as a troubleshooter for the federal government because of its large money reserves. It has acted to guard public corporations and banks by shopping for them shares. <! –
But now LIC's newest bookkeeping has revealed many stunning data. LIC can be seen to be making the identical mistake as public banks have finished by disbursing hundreds of crores of loans to the personal sector.
In the primary six months (April-September) of this monetary 12 months i.e. 2019-20, LIC's non-performing property ie NPA has elevated by 6.10%. This NPA is near the personal sector Yes Bank, ICICI, Axis Bank. These personal banks, as soon as identified for the most effective asset high quality, appear troubled by rising NPAs in a modified setting.
LIC has given loans to a number of company corporations within the type of time period loans and non-convertible debentures (NCDs). LIC has property or money of over Rs 36 lakh crore. As on September 30, 2019, LIC's NPA has elevated to Rs 30,000 crore. Its NPA has doubled within the final 5 years and it has elevated to six.10% of the entire property. Earlier, LIC's non-performing property stood at 1.5 to 2 per cent. Despite all of the competitors, LIC continues to be very robust and accounts for about two-thirds of the premium.