Disinvestment in LIC, Air India, BSNL will unlock lakhs of crores of rupees: Deepak Parekh

Deepak Parekh

Mumbai - Pitching for disinvestment in public sector behemoths like LIC, Air India and BSNL, top industry leader Deepak Parekh has said it can unlock huge funds worth "lakhs of crores of rupees" and shares should be given to retail investors without depending on the overseas entities.

However, one of the major requirements for such large- scale disinvestments is a government thinking on those lines, as lack of political will and union pressure have been halting such proposals for a long time including during the tenure of the previous UPA government, he said.

Giving examples from during the UPA regime, Parekh said 'he has been part of many important government panels,' including those on BSNL and Indian Railways, but nothing moved on the suggestions made by those committees.

LIC to invest Rs 50,000 cr in equity market this fiscal: Roy

Life Insurance CorporationNew Delhi - Country's largest insurer Life Insurance Corporation plans to pump in about Rs 50,000 crore in the equity market, taking its total investment including in bonds to Rs 3 lakh crore during the current fiscal.

"We plan to invest about Rs 50,000 crore in the equity market, while Rs 2.50 lakh crore in bonds," LIC Chairman S K Roy said.

He said LIC picked up stocks worth Rs 51,000 crore last fiscal and investments were made across sectors.

As for the bond market, he said investment in this area was Rs 2.40 lakh crore in the last financial year.

Central Bank to sell 4% stake to LIC for Rs 581 cr

Central-BankMumbai: State-run lender Central Bank of India has said it is in the process of selling 4 percent of its stake to Life Insurance Corporation through an institutional placement for Rs 581 crore to meet its capital requirement of Rs 2,000 crore this fiscal.

"We will be needing Rs 2,000 crore for our business plans this financial year. We did go to LIC and we are getting around Rs 581 crore from them," chairman and managing director Rajeev Rishi said here over the weekend.

He however, did not specify a timeline for the deal with LIC.

LIC acquires less than half of offered RCF shares

LIC acquires less than half of offered RCF sharesIn another attempt to save the government's diversification programme, the State-run Life Insurance Corporation (LIC)has acquired just less than half of the Rashtriya Chemicals and Fertilisers (RCF) shares offered by the government in the previous week.

LIC wrote in a filing with the stock exchange that it acquired 3.16 crore shares out of the total 6.9 crore shares offered by the government in the market as part of the privatisation programme of RCF. LIC acquired 45.86 per cent of the total offered shares for a consideration of Rs. 142.35 crore.

LIC picks up nearly half of HCL shares put on offer

LIC picks up nearly half of HCL shares put on offer State-owned insurer Life Insurance Corporation (LIC) purchased nearly half the shares sold by the Hindustan Copper Ltd to offload 5.58 per cent stake.

As per stats revealed by stock exchanges, LIC purchased 2.25 crore shares from the total 5.16 crore shares offered by HCL during its disinvestment. LIC now owns 2.83 per cent stake in HCL, which has a total public float of 5.99 per cent.

Following the disinvestment, the number of public investors in the state-owned copper miner jumped to 26 from the original 7.

LIC has better payment records than private firms, reports

LICThe Insurance Regulatory and Development Authority (Irda) has said that the state-run Life Insurance Corporation (LIC) has a better payments record than private life insurance companies in the country.

LIC has a better record of paying death claims than private sector life insurance firms in India. LIC is the only government run life insurance firm while there are about two dozen private companies offering life insurance in the country.

Irda's annual report 2011-12 said that, "The claim settlement ratio of LIC appeared to be better than that of the private life insurers."

Insurers want a university wholly dedicated to insurance

Insurers want a university wholly dedicated to insuranceSome of India's leading insurers have mooted an idea to set up a university wholly dedicated to insurance.

Non-profit organization Asean, which runs Asean Institute of Insurance & Risk Management, along with insurance companies like New India Assurance and Life Insurance Corporation, is pursuing discussions with various state governments for setting up the insurance university.

IRDA openly criticizes hike in investment limit for LIC

IRDA openly criticizes hike in investment limit for LIC The Insurance Regulatory & Development Authority (IRDA) has openly criticized the Finance Ministry for its move of hiking the investment limit for LIC from the 10 per cent to 25 per cent.

The IRDA said that hiking the investment limit for LIC would jeopardize LIC corpus fund and put its policy holders at risk,

IRDA Chairman J Hari Narayan openly said that the Finance Ministry's concerned move was against prudence because it would amplify the risk of LIC.

LIC grabs 80.9% of market share of new policies issued last year

LIC grabs 80.9% of market share of new policies issued last yearLife Insurance Corporation (LIC) of India, the largest domestic institutional investor of the country, has claimed that it sold 357 lakh policies during 2011-12, grabbing 80.9 per cent of the market share of new policies issued during the year.

The figure was revealed by LIC Zonal Manager (South Zone) D. D. Singh during a press conference called to announce the launch of a new micro insurance product for economically weaker section - Jeevan Deep.

Life insurance premium collection declines

Life insurance premium collection declinesThe collection of life insurance premium in the country by insurers in the April-January period as the absence of lack of pension and unit-linked insurance products continued to take a toll on the industry players.

The insurers in the country collected Rs 81,496.68 crore through new policies in the period compared to Rs 95,000 crore in the same period previous year, a fall of 14.21 per cent. In the April-January period, premium collection by private life insurance companies alone fell 20 per cent to Rs 22,351.32 crore.

LIC to Sell Policies Online

LIC to Sell Policies OnlineWith internet, everything becomes easy whether to talk about personal gains or professional gains. Having a website or information about company on the internet is quite essential for the company head, as it not only increases revenues but also makes the product and company acknowledged by the consumers.

Domination of Pension Market on LIC

Domination of Pension Market on LICToday, the insurance regulator IRDA has expressed the danger over the domination of pension market over the Life Insurance Corporation (LIC). It also said that the need of other insurance companies to take part in the pension market.

LIC Hits 1 Cr Policies Mark

LIC Hits 1 Cr Policies MarkFor the existing fiscal year (2010-11), Life Insurance Corporation of India (LIC) has surpassed the one crore individual policies mark.

An official declaration said with the First Premium Income worth Rs 15,917 crores recorded during the two weeks ended August 14.

The best performance of the India's biggest life insurer durin the current financial year

The corporation's performance in the current financial year has augmented its market share during in first year premium to 71.33% from 64.86% as on March 31.

LIC plans to invest Rs. 2 lakh crore in FY11

LIC plans to invest Rs. 2 lakh crore in FY11The state-owned insurance agency, Life Insurance Corporation of India (LIC) is thinking of investing Rs. 2 lakh crore across the asset classes in Financial Year-11, a rise from the Rs 1,92,000 crore of the previous fiscal. The premium collection that has been aimed for the fiscal is Rs. 2,01,000 crore.

LIC has invested Rs. 39,000 crore in the first quarter of the current financial year, out of which Rs. 10,000 crore was allotted to equities.

LIC has also planned to issue infrastructure bonds worth Rs. 5,000 crore for this fiscal but no timeline has yet been decided.

LIC Declares Surplus Of Rs 23,478 Cr For 2009-10

LIC Declares Surplus Of Rs 23,478 Cr For 2009-10Life Insurance Corporation (LIC) declared a surplus of Rs 23,478 crore for the last financial year announcing a record dividend of 1029 crore to the central administration.

Mr. T. S. Vijayan, LIC Chairman, said that the entire premium for the last fiscal surged by 18.32% at 1,85,985 crore as against 1,57,186 crore.

Mr. Vijayan stated that Life Insurance Corporation (LIC) would invest approximately Rs 2 lakh crore in the local equity and bond markets in the existing fiscal.

LIC to invest Rs.2 trillion in markets

LICIndia's biggest life insurance company which is also state-owned has said that it will be making a total investment of Rs. 2 trillion into the Indian equity and bond markets.

The announcement was made by the Chairman of LIC, TS Vijayan. He said that the total investment will be directed by the kind of premium collection that it is able to make.

LIC may back Kesub's re-election

Keshub-MahindraIt has been learned from the sources that one of the largest business houses present in the Indian market today, Mahindra & Mahindra (M&M) is talking to key shareholders ahead of its annual general meeting, slated for July 28 for the re-election of Keshub Mahindra as the Chairman of the M&M Group.

The concerns against the 86-year old started floating in the Indian market after the recent conviction in the Bhopal gas leak case.

In fact, the company's largest institutional shareholder LIC has indicated that the company may back the re-election of Keshub for another term in the company.

LIC grabs 6% stake of AT&T in Tech Mahindra

LIC-ATT-Tech-MahindraAfter the US-based telecom services provider AT&T has sold a 6.02 per cent stake in Pune-headquartered Tech Mahindra, it is now clear that the state-owned Life Insurance Corporation (LIC) grabbed onto the opportunity and purchased the stake for an estimated Rs 560 crore.

With the latest deal in place, LIC now holds a whopping over 12% stake in Tech Mahindra and also an additional 4% stake in Mahindra Satyam. While AT&T sold its over 7% stake in Tech Mahindra, the names of the buyers other than LIC haven't been disclosed by the company.

LIC eyes to sell half million credit card next year

LIC eyes to sell half million credit card next yearThe LIC Cards has informed that it is targeting to sell half million credit cards in the upcoming year. The LIC Cards is the subsidiary of Life Insurance Corporation of India.

The PSU firm is optimistic to generate an impressive sell of credit cards worth Rs. 5 lakh next year. However, the company has managed to sell 50, 000 cards since it has started its operation in India.

LIC may again act as a rescuer

LIC-logoLife Insurance Corporation (LIC) is again expected to come and rescue the struggling FPO of NMDC.

The fate of the NMDC offer, which is to be decided on Friday, will tell whether the largest insurer will have to underwrite the issue or not. And since the market has said that the FPO is overpriced, many of the FIIs have tried to stay away from it.

In such a case, unless and until something substantial happens, NMDC may have to face the same fate as the REC FPO.

Till now, said a government executive, LIC is the largest bidder for the issue.

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