1 min read.Updated: 03 Sep 2019, 05:34 PM ISTLivemint
Should the money of LIC’s policyholders be used to bail out poorly performing state-run enterprises?
Life Insurance Corporation of India is investing another ₹4,700 crore in IDBI Bank. This will be in addition to the ₹20,000 crore that the country’s largest insurer earlier injected as part of a deal to acquire a 51% stake. IDBI would also get ₹4,557 crore from the government. With bad loans hovering at more than 29%, the bank is among the best suited candidates for capital infusion. But calling upon LIC to do so isn’t the right way to go about it. Even though LIC has always claimed that it makes such investments independently, there is fair reason to suspect such investments are usually at the government’s behest.