LIC Didn't Pay Dividend In 2020-21, Used Free Reserves To Hike Paid-Up Capital: Government

New Delhi: Life Insurance Corporation (LIC) didn't pay any dividend to the federal government within the final monetary 12 months and used the free reserves to extend its paid-up capital, which has now risen to Rs 6,325 crore, the federal government instructed Rajya Sabha on Tuesday.In 2019-20, the insurance coverage behemoth, which is ready for an preliminary public supply (IPO), paid Rs 2,610.75 crore as dividend to the federal government from earnings pertaining to 2018-19.Citing information obtained from LIC, minister of state for finance Bhagwat Karad stated no dividend was paid in 2020-21 because the Insurance Regulatory and Development Authority of India (IRDAI) had instructed insurers to chorus from dividend payouts from earnings pertaining to the monetary 12 months ending March 31, 2020.The directive from IRDAI got here within the wake of the coronavirus pandemic in order that the businesses might reserve capital to fulfill contingencies, if any."Government, on an application made by LIC, permitted LIC to utilise the free reserves of LIC towards increasing its paid-up capital. As a result, the paid-up capital of LIC increased to Rs 6,324.99 crore, as on December 31, 2021," Mr Karad stated in a written reply.The central authorities is anticipated to file draft papers for the mega IPO of LIC with market regulator SEBI this month. The embedded worth of LIC is estimated at over Rs 5 lakh crore.