State-owned insurer Life Insurance Corporation (LIC) expects to invest ₹3 lakh crore in equity and bonds during the current fiscal year, a 17 per cent increase over the ₹2.5-crore it invested last year, said Chairman SK Roy.

In an interview with BusinessLine , Roy said that the bulk of the investments would be in debt securities. About 15 per cent of the overall investment of ₹3 lakh crore (or around ₹45,000 crore) will be invested in equity. This, of course, would be subject to market conditions and opportunities, he added.

Asked if LIC had used the recent upsurge in the equity market to book profits, Roy said: “We are very long-term investors; every time the market rises, it is not profit-booking time. We have liabilities that are 30 years old.

“These investments will have to live out the tenure so that we meet our liabilities in the distant future. But, there could be an opportunity for churning, which we did last year.”

He said that the life insurer is bullish on sectors such as infrastructure and real estate, and sectors that support them. Besides, LIC has traditionally favoured industries such as information technology, banking and pharma.

Banking focus Commenting on reports that public sector banks had approached LIC for a capital infusion, Roy said that as an investor, LIC was positive about the banking sector and would prefer to remain invested in the sector, subject to regulatory limits.

Asked about investment opportunities in the debt market, Roy said they were limited. “Ideally, corporates should issue bonds and there should be a mechanism to trade in that. But, for a variety of reasons, corporates are able to raise money via loans through the commercial banking side or from other institutions,” he said.

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