LIC has improved its asset high quality forward of the anticipated IPO

As insurance coverage behemoth Life Insurance Corporation of India (LIC) prepares for its preliminary public supply (IPO), anticipated in direction of the top of this fiscal, the corporate has improved its asset high quality for 2020-21.

LIC’s non-performing belongings (NPAs) as on March 31, 2021 had been Rs 35,129 crore out of a complete portfolio dimension of Rs 4,51,303 crore, its annual report mentioned.

The sub-standard belongings are Rs 254.37 crore whereas the uncertain belongings are Rs 20,369.17 crore and loss belongings are Rs 14,506.35 crore. An quantity of Rs 34,934.97 crore is supplied as per IRDAI tips within the books of accounts in direction of non-performing belongings, it mentioned.

The proportion of gross NPA is 7.78 per cent whereas the web NPA is 0.05 per cent on the finish of March 2021. This is decrease than gross NPA of 8.17 per cent (as a proportion of its debt portfolio) and web NPA of 0.79 per cent within the earlier 12 months.

“The management has reviewed the asset quality and performance of investments in respect of real estate, loans, investments, other fixed assets etc and adequate provision for impairment/diminution in value of investments/assets have been provided for wherever necessary,” the annual report mentioned.

In absolute phrases, the NPA was Rs 36,694.20 crore out of a complete debt of Rs 4,49,364.87 crore in 2019-20.

The company has made provisions to the tune of Rs 37,341.6 crore, of which Rs 34,934.97 crore is in direction of uncertain, sub-standard, and loss belongings.

The authorities earlier this 12 months amended the Life Insurance Corporation Act, 1956, to facilitate the itemizing of LIC.

According to the modification, the central authorities will maintain 75 per cent within the LIC for the primary 5 years after the IPO after which it’ll subsequently maintain a minimum of 51 per cent always after 5 years of its itemizing. The authorities at the moment totally owns LIC.

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