Indiaherald Group of Publishers P LIMITED

close save
crop image
Thu, Jan 24, 2019 | Last Updated 2:21 am IST

Menu &Sections


Central government behind LIC losses?

Central government behind LIC losses?
Central government behind LIC losses?

Shocking revelations are coming one after the other, following the insurance company LIC, and getting ready to invest in the loss making IDBI Bank.  In the past 25 years, of the 21 investments LIC has made in public sector industries, 18 have faced huge losses. LIC has a minimum of 1 percent share in almost all the public sector banks, and of these, only 3 banks have their share values good after December 2015. 


The 3 banks that is actually profitable, among LIC invested ones are, Indian Bank, Vijaya Bank and State Bank of India. Between 2015 December and 2018 March, the stock values of banks have seen a drastic downfall by at least 8 percentage. With LIC investing huge on public sector banks, RBI has been analyzing the values, size and Non performing asset size of each of these banks.  Since then, Dena Bank, Bank of Maharashtra and UCO banks have a 60% downfall. 


On the other end, even as public sector banks are on the down trend, the private banks have grown profitable.  HDFC shares have grown by 50%, while Yes bank shares have grown by a remarkable 134%. LIC has maximum shares in Punjab National Bank (14.2), corporation bank (13), Allahabad bank (10) and 10% in IDBI, Syndicate Bank and Central Bank of India. 

Central government behind LIC losses?

 In such a scenario it was revealed that LIC will be investing more than 11000 crores on IDBI, and since the bank is already running in losses and extreme levels of NPAs, financial experts are alarming that LIC won't be getting returns at all, and it is being said that the central government has been pushing LIC to bailout banks in NPA troubles. Now the question of who's responsible for people, who have invested their insurance premiums in LIC, has risen. 

 Central government behind LIC losses?

It was said by finance minister Arun Jaitley that more than 50% shares of IDBI will be transferred from government to LIC, as the government earlier had 81% shares.  Though LIC buying IDBI shares will be a relief for government, it will be a huge question for Stake holders who have invested premium, whether they will get their insurance money or not in the future.


Central government behind LIC losses?
5/ 5 - (1 votes)
Add To Favourite
More from author
Hat trick Hero Kohli, India dominating in ICC Award list
India facing a rising tide of people unwilling to be vaccinated
Chinese vendors flooded both online & offline channels for Smartphone selling
TDP is seemingly attempting to tap into Kapu vote bank
Former VHP leader's sensational remark on Modi!
TN Milk agents warn Simbu!
Sofia Hayat opens on Rohit Sharma!
Virat Kohli's rocks ICC awards!
TRS MP Kavita selected for Fame India Extraordinary Parliamentarian award 2019
India's first ever all women political party launched in Mumbai
Picture of an antiseptic labeled cough syrup with logo of Govt of Tamilnadu went viral
Imran Khan is agent of change Senator Lindsey Graham looking for
Politics in Andhra Pradesh are turning Hot each day
TTD endeavors to ease Darshan for Children & Senior Citizens
Hyderabad Auto drivers facing a tough competition from Uber & Ola
Actor Ajith pens to his Fans to concentrate in Studies
Zomato suspended Restaurant for adding Plastic in Paneer Dish
Government of Tamilnadu is Executing Agency of Chennai peripheral Ring Road project
Major fire accident broke out in Vizag Steel Plant
Why Mehul Choksi surrendered Indian Citizenship?
Tamilisai bats for TN CM!
World's cutest dog passes away!
Politician - Actress Divya Spandana trolled!
Tamilisai plan to exploit Thala fans!
PM Modi faces a united opposition in national elections
Is dreams of MGR & J. Jayalalitha fulfilled by PM Modi?
Will actress Kareena Kapoor Khan follow footsteps of her late father-in-law in politics?
Rapper Cardi B has slammed US President Donald Trump
TDP Govt in AP implemented Rythu Raksha scheme
Food Apps staff warned for violating Traffic Rules
Tamilnadu CM ready for By-polls with Lok Sabha Polls
Exciting News: Flipkart Republic Day Sale started from January 20 to 22, 2019
Hyderabad Police organized Job Connect program to provide job opportunities
GoAir to operate services from Kannur to Muscat from February 28
Did Sasikala have special privileges in Jail?
Telangana CM KCR's ideology to make Telangana roads shine like a Mirror
About the author

Bharath has been the knowledge focal point for the world, As Darvin evolution formula End is the Start ... Bharath again will be the Knowledge Focal Point to the whole world. Want to hold the lamp and shine light on the path of greatness for our country Bharath.