LIC gets board nod to infuse Rs 25 crore in asset management arm

As of November 11, LIC has 45 percent stake in the company, followed by LIC Housing Finance at 39.30 percent, GIC Housing Finance at 11.70 percent and Union Bank of India at 4 percent.

The Life Insurance Corporation (LIC) of India has secured the approval from its board to infuse Rs 25 crore in LIC Mutual Fund Asset Management Ltd on a preferential basis, the country’s largest insurance company said in an exchange filing on December 11.

Launched in 1989, the fund house was ranked the sixth biggest AMC with assets of around Rs 50,000 crore as in November 2009. But, by June 2023, its assets were down to Rs 19,000 crore.

As of December 11, LIC has 45 percent stake in the company, followed by LIC Housing Finance at 39.30 percent, GIC Housing Finance at 11.70 percent and Union Bank of India at 4 percent.

As of 1.41pm, the shares of LIC were trading at Rs 773.05, 0.078 percent up.

LIC in Q2

LIC reported a 50 percent fall in net profit at Rs 7,925 crore for the quarter ended September 30, 2023, from Rs 15,952 crore a year ago.

The insurer, in a press release said that it had changed its accounting policy in September 2022 regarding transfer of amount (Net of Tax) due to which on-year profit figures cannot be compared.

LIC's net premium income fell 19 percent to Rs 1.07 lakh crore in the quarter under review from Rs 1.32 lakh crore a year back. Its gross non-performing assets (GNPAs) stood at 2.43 percent as against 5.60 percent in the previous year and net NPA remained unchanged.