Page 10 - Insurance Times December 2018

LIC of India

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LIC bails our 4 PSU IPOs LIC Housing Finance profit rises 12%
LIC Housing Finance has reported a 12% increase in net profit at Rs. 573 crore
in 2018
in the second quarter ended September 30, 2018,
against Rs. 514 crore in the quarter earlier year. In-
terest income was up 11% year-on-year (y-o-y) at
Rs.4,151 crore (Rs. 3,744 crore in the year-ago
quarter). Interest cost rose 13% to Rs.3,138 crore
(Rs.2,780 crore).

The Net interest income increased up by 5% y-o-y
to Rs. 1,012 crore against Rs. 963 crore in the same period in the previous year.
Total loan disbursements went up by 30% to Rs. 14,272 crore against Rs. 10,975
crore in the corresponding period in the previous year. Vinay Sah, MD & CEO, LIC
Life Insurance Corporation of India
played an important role in the Cen- Housing Finance, said: "In the second quarter of the financial year, we have seen
strong disbursal growth and expect the trend to continue in future quarters.
tral Government disinvestment drive
in 2018. LIC made a sizeable invest- "The company recorded a strong growth in the affordable segment both in value
ment in IPO's of 4 public sector un- and volume terms, and is poised to continue its growth trajectory." Net inter-
dertaking as per the analysis of est margin for the reporting quarter was a shade lower at 2.35 per cent against
shareholding data. 2.38 per cent in the year-ago quarter. Gross non-performing assets (GNPAs) rose
to 1.20 per cent of gross loans as on September 30, 2018, against 0.80 per cent
LIC bought 28 per cent of the total as on September 30, 2017.
shares on offer in Garden Reach Ship-
builders' share sale. LIC acquired 7.3 Competition Commission approves LIC's majority stake
per cent stake in the shipbuilding firm
by investing nearly Rs.1 billion in its buy in IDBI Bank
Rs.3.4-billion maiden offering. Simi- The Competition Commission has cleared LIC's proposed acquisition of up to
larly, LIC invested in public issue of 51 percent stake in debt-laden IDBI Bank. The deal
Hindustan Aeronautics by mopping would help LIC to enter the banking space and would
up 70 per cent of the shares offered. provide business synergies despite the IDBI Bank's
stressed balance sheet.
LIC bought a 7 per cent stake in the
defence company for Rs. 28.4 billion Mergers and acquisitions beyond a certain threshold
during the IPO. Midhani (Mishra require the approval of the Competition Commission
Dhatu) and Bharat Dynamics are of India (CCI), which keeps a tab on unfair business practices across sectors. In
other recent IPOs to have seen huge August 2018, the government gave its nod for the LIC's proposed purchase of
participation by LIC. However, Rites up to 51 percent stake in the bank.
and IRCON were two IPOs that man- With the deal, the insurer would have access to around 2,000 branches of the
aged to sail through without LIC par- bank through which it can sell its products. Last month, the LIC announced an
ticipation. open offer to buy 26 percent stake from shareholders of the bank.

10 The Insurance Times, December 2018