LIC will be getting bankers on board for managing lending operations
LIC will soon be obtaining services of retired bankers to strengthen the lending operations and to ensure where NPAs are kept at the minimum.
LIC has now set up a cell for its lending of one-time settlement (OTS) and NPA resolution, sources said, adding that the company will soon have experts particularly bankers to its portfolio.
Sources said that LIC has been into the business of insurance form a very long time but they haven’t been expertise on loan risk assessment and resolution.
They added that a standard operating procedure also been working out for repayment through one-time settlement scheme.
By the end of March 2016, LIC has a debt portfolio of Rs 3.79 lakh crore, which has been bigger than the loan portfolio of most banks. And its non-performing assets stood at 3.76 percent by the end of March 2016, up from 3.30 percent in the last year.
It is driven by sudden surge in a single premium policy sale and falling in interest rates, the total new business premium of LIC has raised to 25.8 percent to Rs 1.22 lakh crore in FY 2016-17 from around Rs 97,000 crore in the last year.
Nevertheless, under review the state-owned insurer has witnessed de-growth policies during the year.
The New business on the individual basis increased 47 percent to Rs 37,800 crore which it had been Rs 25,700 crore a year ago.
On individual basis the new business has jumped 122 percent from the projected target of Rs 31,000 crore in 2016-17. Seemingly, the target has been same for the previous fiscal too.
On individual basis the new business at LIC has grown by 47 percent from Rs 25,700 crore to Rs 37,800 crore for 2016-17 in the previous fiscal.