NPA crosses 30000 crores in 5 years
As a public sector insurance company, the Indian Life Insurance Corporation (LIC) is considered a symbol of trust. Millions of people in the country blindly invest a large portion of their hard-earned money into LIC’s plans. But many events in recent years are pointing to the risk that the cash reserves near LIC are increasing.
Since LIC has cash reserves, LIC has also been working for the government to rescue it, buying shares of public companies and banks. But there has been a lot of shocking information in view of LIC’s innovative booklet.
LIC seems to be making the same mistake, as public banks have done by giving thousands of crores of loans to the private sector. During the first six months (April-September) of this financial year, the non-performing assets of the LIC, ie, NPAs, have increased by 6.10%. This is the same as the NPA Private Sector Yes Bank, ICICI Bank, Axis Bank. This private bank, sometimes known for its best asset quality, is facing problems with rising NPAs in a changing environment.
In the second quarter of 2019-20, Yes Bank’s total NPA reached 7.39 percent, ICICI’s NPA 6.37 percent and Axis Bank’s NPA reached 5.03 percent.
Originally a public company, LIC has given loans to many corporate companies in the form of term loans and non-convertible debentures. LIC has assets or cash of over Rs 36 lakh crore. As of September 30, 2019, the NPA of LIC has risen to Rs 30000 crore. Its NPA has increased twice over the last 5 years and has grown to 6.10% of total assets. Previously, LIC’s NPA has been around 1.5 to 2 percent. Despite all the competition, LIC is very strong at present and accounts for about two-thirds of the premium.
Who is the defaulter of LIC?
LIC has a number of big names in loan default companies. These include Essar Port, Gaiman, IL&FS, Deccan Chronicle, Bhushan Power, Videocon Industries, Alok Industries, Amtrak Auto, ABG Shipyard, Unitech, GVK Power, and GTL. LIC has given these companies a term loan and a loan in the form of NSD.
You are reading this article through Indian Solution, as well as downloading our mobile app by clicking here to get the emotional stories, health information, Bollywood news, religious stories, recipes and other interesting information that is useful in everyday life.
If you liked the article, please like and share it with friends