LIC to soon get bankers on board for managing lending operations
LIC has been into the business of insurance but they don't have expertise on loan risk assessment and resolution, sources said.
Insurance behemoth LIC will soon obtain services of retired bankers to strengthen its lending operations and ensure that NPAs are kept at the minimum.
LIC has set up a cell for its lending, NPA resolution and one time settlement (OTS), sources said, adding the company will soon get experts particularly bankers to this portfolio.
LIC has been into the business of insurance but they don't have expertise on loan risk assessment and resolution, sources said.
A standard operating procedure has also been worked out for repayment through one-time settlement scheme, they added.
At the end of March 2016, LIC had a debt portfolio of Rs 3.79 lakh crore, bigger than the loan portfolio of most banks. Its gross non performing assets stood at 3.76 per cent at the end of March 2016, up from 3.30 per cent in the previous year.
Driven by sudden surge in single premium policy sales and falling interest rates, total new business premium of LIC rose 25.8 per cent to Rs 1.22 lakh crore in FY 2016-17 from around Rs 97,000 crore in the previous year.
However, the state-owned insurer witnessed degrowth in terms of policies during the year under review.
Total new business premium, including pension and group business, rose to Rs 1.22 lakh crore in 2016-17 from around Rs 97,000 crore a year ago, a senior LIC official said. New business on the individual basis zoomed 47 per cent to Rs 37,800 crore from Rs 25,700 crore a year ago.
New business on the individual basis jumped 122 per cent from the projected target of Rs 31,000 crore in 2016-17. Interestingly, the target was the same for the previous fiscal too. New business on the individual basis at LIC grew by 47 per cent to Rs 37,800 crore for 2016-17 from Rs 25,700 crore in the previous fiscal.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
07:36 PM IST