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 Financial Services (IL&FS) and Anil Ambani's Reliance Group.
LIC's investments fell to 7.59 per cent in FY19 from 7.71 per cent in the year before. Its investments stood at Rs 29.84 lakh crore including investments in loans, debentures, equity, social and infrastructure projects etc.
The insurer has a market share of 76.28 per cent in number of policies and 71 per cent in first-year premiums. It saw a 10 per cent increase in valuation surplus of Rs 53,214.41 crore for FY19.