Life Insurance Corporation of India (LIC) has made a request to the Reserve Bank of India (RBI) to introduce 100-year government bonds. This move is aimed at reducing the country’s growing fiscal deficit and attracting long-term investors to the country’s debt market. The LIC is one of the largest life insurers in the country and has been actively seeking to expand its investment options.
Additionally, the CEO of LIC, Sandip Das, announced that the corporation is likely to make an announcement on its acquisition of a stake in a health insurance firm by March 31, 2023. According to Das, the exact shareholding will depend on the valuation of the insurance firm. This move is part of LIC’s efforts to diversify its business and venture into new areas.
The request for 100-year government bonds is seen as a welcome move by the RBI, which has been struggling to manage the country’s high fiscal deficit. The RBI has been encouraging institutions like LIC to invest in long-term government securities to reduce the country’s debt burden and attract foreign investors.
The request comes at a time when the Indian government is planning to sell its stake in several state-run companies to attract foreign investors. The government has been looking to divest its stake in several public sector undertakings (PSUs) to raise funds and improve its balance sheet.
The CEO of LIC, Sandip Das, has expressed his confidence in the insurance firm’s ability to make a successful foray into the health insurance sector. “We have a strong franchise and a large distribution network, which will allow us to tap into the growing health insurance market,” he said.
The move by LIC to venture into health insurance is seen as a strategic shift by the company to diversify its portfolio and reduce its dependence on traditional life insurance products. The insurance firm is expected to make an announcement on its acquisition of a stake in a health insurance firm by the end of March 2023.