LIC's Investment Portfolio Touches ?29.3Lcr in FY19, RBI Asks Banks to Reduce Stakes in Insurance Companies to 30%

LIC's investment portfolio touches ?29.3Lcr in FY19. RBI asks banks to reduce stakes in insurance companies to 30%.

 

INSURANCE

LIC's investment portfolio touches ?29.3Lcr in FY19.

FYI: Life Insurance Corporation of India's (LIC) investment portfolio in FY19 touched ?29.3Lcr. In 2014, it was ?16Lcr, reflecting a CAGR of 12.8%.

 

LIC's yield on its investment portfolio, meanwhile, stood at 7.59% in FY19, an eight-year low. On a Y-o-Y basis, this percentage is 12 basis points lower from the previous year. Read more here.

RBI asks banks to reduce stakes in insurance companies to 30%.

And Now, This: The RBI has asked banks to cap their stakes in insurance companies at 30%. The move is aimed at shielding lenders from risks arising out of their non-banking businesses and steer resources towards credit growth in a slowing economy. The move is expected to have significant implications - not only on banks, which derive sizeable income from their insurance units, but also on insurers since banks are major capital providers. Livemint

FIN.

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