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  • Symposium Project: LIC-Acting Brave or Digging Its Own Grave?

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    LIC will invest up to Rs 13,000 crore for a 40% stake in IDBI Bank, which had the highest bad loans last year. This raises questions as LIC has made other questionable investments in the past to bail out struggling government organizations. While LIC claims it is helping provide capital to IDBI, critics argue that it is a risky bet that could drain LIC's funds and go against RBI ownership rules for banks. There are calls for LIC to have more independent oversight to avoid being used by the government to bail out failing groups at its own expense.

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    LIC will invest up to Rs 13,000 crore for a 40% stake in IDBI Bank, which had the highest bad loans last year. This raises questions as LIC has made other questionable investments in the past to bail out struggling government organizations. While LIC claims it is helping provide capital to IDBI, critics argue that it is a risky bet that could drain LIC's funds and go against RBI ownership rules for banks. There are calls for LIC to have more independent oversight to avoid being used by the government to bail out failing groups at its own expense.

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    9 views10 pages

    Symposium Project: LIC-Acting Brave or Digging Its Own Grave?

    Uploaded by

    Tanisha
    LIC will invest up to Rs 13,000 crore for a 40% stake in IDBI Bank, which had the highest bad loans last year. This raises questions as LIC has made other questionable investments in the past to bail out struggling government organizations. While LIC claims it is helping provide capital to IDBI, critics argue that it is a risky bet that could drain LIC's funds and go against RBI ownership rules for banks. There are calls for LIC to have more independent oversight to avoid being used by the government to bail out failing groups at its own expense.

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    © All Rights Reserved
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    of 10

    SYMPOSIUM PROJECT

    LIC- Acting Brave or Digging


    Its Own Grave?

    - Tanisha Chawla
    Class XI- E
    INTRODUCTION
    LIC- Life Insurance Corporation of India (L
    THE DILEMMA- A BURDENED
    COOPERATION PUTTING MONEY IN A
    TROUBLED BANK

    The government-owned Life Insurance


    Corporation of India will pump in up to Rs
    13,000 crore for a 40% stake in IDBI Bank, the
    worst performer in terms of bad loans last
    financial year.
    Other questionable investments- Vakra

    Such investments by LIC, especially du


    ACTING BRAVE- WHY IS LIC DOING THIS?

    The public life insurer is used as a conveniently by whichever governmen

    Over the last four years, it has given questionable soft loans to the Railw
    DIGGING ITS OWN GRAVE?

    1. Just helping the government provide much-needed capital to the


    2. RBI norms state that a bank cannot own more than one lif
    3. IDBI is a bad bet for LIC- a money-grabbing blackhole
    CONCLUSION
    There should be a larger independent public inst

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