As insurance coverage behemoth Life Insurance Corporation of India (LIC) prepares for its preliminary public provide (IPO), anticipated in direction of the tip of this fiscal, the corporate has improved its asset high quality for 2020-21.
LIC’s non-performing property (NPAs) as on March 31, 2021 have been Rs 35,129 crore out of a complete portfolio measurement of Rs 4,51,303 crore, its annual report stated.
The sub-standard property are Rs 254.37 crore whereas the uncertain property are Rs 20,369.17 crore and loss property are Rs 14,506.35 crore. An quantity of Rs 34,934.97 crore is offered as per IRDAI tips within the books of accounts in direction of non-performing property, it stated.
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 stated.
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 property.
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’s going to subsequently maintain a minimum of 51 per cent always after 5 years of its itemizing. The authorities at the moment totally owns LIC.