Table of Contents
Why government is selling LIC? and What will happen to LIC after the financial minister’s announce divest?
- The government set a divestment target of Rs 2.1 lakh crore for FY21 compared with Rs 1.05 lakh crore target for the ongoing financial year. Government had set a target of Rs 1.05 lakh crore in FY20. On the strategic sale, the government has already initiated the process for Air India and invited bids from potential buyers for a 100 per cent stake in the National Carrier.
♦Four things to know about the upcoming LIC
- Government owns 100% stake in LIC and is not likely to sell more than 10% stake in the public sector insurance firm, according to media reports.
- Modi government has set an ambitious divestment target of Rs 2.1 lakh crore for FY21 and expects to garner nearly Rs 70,000 crore through partial stake sale in LIC. Experts believe the stake sale will allow government to meet its highest ever disinvestment target and attract foreign investors.
- LIC’s gross NPAs rose to 6.10 per cent in the first six months (April-September) of 2019-20. Gross NPAs have almost double in the last five years. The insurer always maintained a stable 1.5-2 per cent gross NPAs.
- LIC is the country’s largest insurer with a market share of 76.28% in number of policies and 71% in first-year premiums. LIC has many subsidiaries including IDBI Bank. It bought a controlling stake in IDBI Bank last year. LIC recorded assets under management of Rs 31 lakh crore in 2019.
- After divestment, LIC will work as a semi government company like PSU banks. According to media reports, government is selling 10% stakes but can sell more in upcoming days.
- Because Main reason LIC’s gross NPAs rose to 6.10 per cent in the first six months (April-September) of 2019-20.
- Headquarters: Mumbai
- Founded: 1 September 1956
- Total assets: Increase₹3,111,847 crore (US$440 billion)(2019)
- Chairman: MR Kumar
- Managing Directors: Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar
- Slogan: LIC’s slogan yogakshemam vahaamyaham is in Sanskrit which loosely translates into English as “Your welfare is our responsibility”.
Recommended for SBI CLERK MAINS
Online Mock Test Available on App as well as Web:
How to Access on App:-
- Go to Playstore search Ambitious Baba or Click here to Install App
- After Install Login with Google Account or Facebook Account
2020 Preparation Kit PDF
|I challenge you will get Best Content in Our PDFs with Detail solutions and Latest Pattern|
|Memory Based Puzzle E-book | 2016-19 Exams Covered||Get PDF here|
|Caselet Data Interpretation 200 Questions||Get PDF here|
|Puzzle & Seating Arrangement E-Book for BANK PO MAINS (Vol-1)||Get PDF here|
|ARITHMETIC DATA INTERPRETATION 2019 E-book||Get PDF here|
|The Banking Awareness 500 MCQs E-book| Bilingual (Hindi + English)||Get PDF here|
|High Level DATA INTERPRETATION Practice E-BOOK||Get PDF here|
- WhatsApp Group Join here
- Telegram Group:- Click Here
- Telegram Channel: Click here
- Like & Follow our Facebook Page:- Click here
- Join our Facebook Group:- Click Here