InvestorQ : Is it true that the LIC NPAs have gone up to Rs.30,000 crore? Is this the highest NPAs in India and what does it mean for LIC Policy Holders?
Mahima Roy made post

Is it true that the LIC NPAs have gone up to Rs.30,000 crore? Is this the highest NPAs in India and what does it mean for LIC Policy Holders?

Answer
user profile image
Aditi Sharma answered.
9 months ago


The total NPAs of LIC have doubled this September ending half year to Rs.30,000 crore and the sharp rise in NPAs was largely on account of some bad account exposures like Yes Bank, Jet Airways, Deccan Chronicle, IL&FS etc. Of course, the NPA level of Rs.30,000 crore is not the highest for State Bank of India has NPAs in excess of Rs.100,000 crore. But considering that this policyholder money and most of these assets are in long term equity, this is a matter of concern. Also, in the last few years, the LIC has invested heavily in state government bonds, infrastructure bonds and has even managed to bail out some PSUs. All these could cumulate into problem areas over the next few quarters and that is something LIC needs to be careful about. Also, LIC has been losing market share to private life players in the last few quarters and one factor that has kept LIC going is the trust factor; being a government owned company. Now that is coming into question and the government as the sole shareholder of LIC needs to be cautious about that!