LIC Investment In Equity Mket To Cross Rs.55,000 Cr

New Delhi: Life Insurance Corporation, India's largest insurer, has lined up over Rs.55,000 crore for investment in the equity market in the current fiscal year (2014-15), a part of which will be used for picking up stakes in PSUs during the disinvestment process.

"We will invest a total of Rs. 55,000 crore or even more in the equity market in the current fiscal," LIC chairman S K Roy told PTI.

Asked how much LIC has earmarked for the upcoming disinvestment, he said that Rs. 55,000 crore "covers all" types of investment.

LIC had picked up stocks worth Rs. 51,000 crore last fiscal year and investments were made across sectors.

The public sector insurer has been a key investor in the disinvestment programme of the government.

The government recently gave go ahead to disinvestment of its part stakes in ONGC, Coal India Ltd (CIL) and NHPC, which together may earn Rs. 43,000 crore to the exchequer. It is also planning to sell 5 per cent stake in SAIL and 10 per cent each in RINL and HAL in FY15.

Mr Roy also informed LIC investment in the bond market may touch Rs. 2.5 lakh crore in the fiscal ending March 2015. In FY15, the life insurer has raised its stakes in many public sector banks including United Bank of India, Central Bank of India and Bank of Maharashtra by picking up preferential shares.

Some more banks would make preferential allotment to LIC during course of the year.

During the first quarter ended June, LIC earned a total premium of Rs. 14,016 crore, lower than Rs. 14,295 crore in the corresponding period a year ago.

With a 75 per cent market share, LIC collected Rs. 41,441 crore from individual premiums and Rs. 48,682 crore in group premiums, aggregating to a total of Rs. 90,124 crore.