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LIC’s investment portfolio touches Rs 29.3 lakh crore in FY19, yield at 8-year low: Report

LIC’s investment portfolio touches Rs 29.3 lakh crore in FY19, yield at 8-year low: Report

The investment portfolio of Life Insurance Corporation of India (LIC) touched Rs 29.3 lakh crore in FY19 from Rs 16 lakh crore in FY14, a compound annual growth rate (CAGR) of 12.8 percent, the Business Standard reported.

The corporation’s income from investment touched Rs 2.22 lakh crore in FY19 from Rs 1.43 lakh crore in FY14, a CAGR of 9.3 percent.

However, the corporation has managed a 7.59 percent yield on its investment portfolio during FY19, an eight-year low. The said percentage is down 12 basis points (bps) on a year-on-year (YoY) basis.

LIC’s yield over the 10-year government bond, which was 31 bps in FY18, shrank to 24 bps in FY19 -- a five-year low, the publication added.

Moneycontrol could not independently verify the report.

The reasons behind the poor numbers are downward pressure on bond yields and interest rates and poor industrial growth, the report stated. LIC data suggest that slow…

LIC raises FY19 provisioning by 30% to Rs 23,760 crore

LIC raises FY19 provisioning by 30% to Rs 23,760 crore

Life Insurance Corp of India has raised provisions for doubtful assets for the year ended March by 30 per cent to Rs 23,760 crore. Out of its total debt of Rs 4 lakh crore, the insurer's NPAs stood at Rs 24,777 crore on March 31. Its doubtful assets stood at Rs 16,690 crore, loss assets at Rs 6,772 crore and its substandard assets at Rs 1,312 crore.

The state-owned insurance corporation released the figures in its annual report after reviewing asset quality and the performance of investments in real estate, loans and other assets.

LIC had previously posted a reduction in gross non-performing assets (NPAs). It had set aside Rs 18,195 crore for FY19, a reduction to 6.15 per cent from 6.23 per cent in FY18. Net NPAs shrank to 0.27 per cent in FY19 from 1.82 per cent in FY18 due to increased provisioning.

The state-run insurer has exposure to companies such as Dewan Housing Finance Corp Ltd (DHFL), Infrastructure Leasing and Financi…