LIC shares up 1% after Sebi disposes of adjudication proceedings against the insurer

LIC share price: Shares of state-owned insurer Life Insurance Corporation (LIC) gained as much as 1.3 per cent to Rs 684.90 on the BSE in the early trade after the capital markets regulator SEBI on Thursday disposed of adjudication proceedings against it with respect to alleged violations of mutual fund norms. The case pertained to the insurer's shareholding in IDBI Mutual Fund.

The stock ended at Rs 674.25, down 0.26 per cent.

In a 12-page order, Sebi said the alleged violation on the part of LIC is to be viewed in the context of the efforts taken by it to complete the merger of IDBI Mutual Fund with LIC Mutual Fund and disposed of the adjudication proceedings.

The regulator had conducted an examination in the matter of alleged non-compliance with MF (Mutual Fund) regulations by LIC with a focus on ascertaining if there was any violation of the rules, according to a PTI report.

LIC Q1 Results

LIC Housing Finance reported a 43 per cent rise in net profit at Rs 1,324 crore in the April-June quarter. The housing finance subsidiary of LIC had posted a net profit of Rs 925 crore in the year-ago period. 

The total income in the first quarter of the current fiscal rose to Rs 6,747 crore against Rs 5,291 crore, LIC Housing Finance said in a regulatory filing. The lender's interest income also increased to Rs 6,704 crore from Rs 5,250 crore in the same quarter a year ago.

The net NPA declined marginally 2.99 per cent against 3.01 per cent in the year-ago period.

Tribhuwan Adhikari, the newly appointed managing director of LIC Housing Finance, said the jump in the bottom line was aided by high-interest rates and keeping borrowing costs low. READ MORE