IN THE EVENT OF LIC, THE AMOUNT OF YOUR INSURANCE WILL NOT BE IMMERSED SOMEWHERE BY THE MODI GOVERNMENT'S MOVE
In the event of LIC, the amount of your insurance will not be immersed somewhere by the Modi Government's move
The central government has started a new exercise to tackle the problem of NPA (Non-Performing Assets) raised in front of government banks in the country. In the beginning of the year, the central government has approved a 2.1 lakh crore Recyclable Program in January to liberate the banks from the NPA. Now it is in the process of handing IDBI Bank, which has the highest NPA-compliant Life Insurance Corp of India (LIC), to the country's largest insurance company.
LIC is the capital of the majority of the people of the country, and it halves thousands of millions of rupees from its savings every year in the LIC's policy. With the help of this money, the future of the investor person and his family remains secure. But now the central government is surrendering its LIC to the rescue of a bank. It is clear that every year the money deposited as a premium in LIC's policy and it can be used to save the bank from being submerged.
What is the question?
But the question is whether this decision is in the interests of LIC's customers in the country? Does this decision of the Central Government guarantee that IDBI's NPA problem will be solved? In the end, will this decision protect LIC's customers from the biggest investment of their lifetime?
IDBI Bank Status:
Currently, IDBI Bank is among the state's 21 public sector banks accounting for 85% of the central government. During the financial year 2018, the central government has given 10 thousand 610 crores to help the bank under its recapitalization program. IDBI Bank is the largest NPA-accredited bank in the country's Bimanu Government Banks.
In the last few years, the central government has worked on the strategy to fulfill its share of the government banks, which have fallen ill in the name of banking reforms. Under this strategy, it is easiest for the central government to reduce the share of IDBIV, as IDBI Bank should not be under the Nationalization Act and there will be no legal barriers to reducing the shareholding.
On the other hand, life insurance company LIC has long sought to make space in the banking business. The biggest reason behind this is the capitalized capital which is collected by LIC policyholders across the country. However, in the east, the central government's LIC has allowed it to invest in the stock market after earning more than cash. In this decision, the risk of LIC's subscribers was increased.
For the entry of LIC into banking, not only IDBI has been bought in the past but some shares of almost all government banks are being bought. However, in the present times, when the central government is in the process of releasing IDBI stake in the name of banking reform, LIC also has the funds to prepare one of its own banks.
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