Mumbai: Life Insurance Corporation of India (LIC) posted a 145% increase in net profit on equity sales in the April-June quarter of the fiscal year. A senior executive has also further stated that, the company made a net profit of Rs 6,100 crore in the first quarter next to Rs. 2,489 crore in the year-before period.
Chairman VK Sharma has also further conveyed that, this year investment profit expansion is 145%. They earned over Rs. 6,100 profit on equity sales in first quarter from Rs. 2,489 crore in similar quarter. Equity investment will be in range Rs 50,000 this fiscal year.
The company invested Rs 16,000 crore in equities. Chairman further added that, LIC will look to invest in IPO of General Insurance Corp Re. GIC Re and New India Assurance is in the process of listing on the stock exchanges. I can say without doubt that LIC will invest in GIC Re.
We have to take investment committee’s support for investment in other corporation. There is no restriction from regulator or administration. The nation’s main life insurer is less than Rs. 500 crore in exposure to 12 accounts under Insolvency and Bankruptcy Code. Its gross NPA is Rs 18,000 crore, which Rs. 14,000 crore is under joint providing forum and Rs. 4,000 crore lent individually.