The country’s largest insurer LIC has lined up over Rs 55,000 crore for investment in the equity market in the current fiscal, 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, SK Roy, told PTI.

Asked how much LIC has earmarked for the upcoming disinvestment, Roy said that Rs 55,000 crore “covers all” type of investments.

LIC had picked up stocks worth Rs 51,000 crore last fiscal 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 the go ahead to disinvestment of its part stakes in ONGC, 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 the current fiscal.

Roy also informed LIC investment in the bond market may touch Rs 2.5 lakh crore in the fiscal ending March 2015.

In the current fiscal, 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 2014-15 fiscal, LIC earned a total premium of Rs 14,016 crore, lower than Rs 14,295 crore in the year-ago period.

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

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